LOS ANGELES, June 6, 2007 (PRIME NEWSWIRE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed the Class Action lawsuit currently pending in the United States District Court for the District of Nevada on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired the common stock of Shuffle Master, Inc. ("Shuffle Master" or the "Company")(Nasdaq:SHFL) between December 22, 2006 and March 12, 2007, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Shuffle Master and certain of the Company's executive officers with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and S.E.C. Rule 10b 5 promulgated thereunder. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning the Company's financial performance caused Shuffle Master's stock price to become artificially inflated, inflicting damages on investors. Shuffle Master, through its subsidiaries, develops, manufactures and markets technology- and entertainment-based products for the gaming industry. The Complaint alleges that during the Class Period defendants inflated reported profits by, among other things, booking an inter-company transfer of inventory that occurred on the last day of the fiscal year ended October 31, 2006, as if it were a sale to a third party.
Specifically the Complaint alleges that: (1) defendants, through the October 31, 2006 transaction and several other transactions for which the company improperly accounted, inflated Shuffle Master's quarterly earnings per share by 50% and year end earnings per share by 35%; and (2) the fraudulent booking of inter-company transactions arose out of Shuffle Master's tax avoidance scheme, whereby the Company transferred profits that were otherwise taxable in the U.S. to foreign countries where profits would be taxed at a much lower rate, if at all.
On March 12, 2007, Shuffle Master admitted that it had improperly booked the October 31, 2006 transaction, and that it would have to restate reported results for the fourth quarter and fiscal year 2006. The Company further admitted that its internal controls were defective. In response to this news, Shuffle Master's stock fell 8%.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than August 3, 2007, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Lionel Z. Glancy, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca