NEW YORK, June 4, 2007 (PRIME NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") has filed a class action lawsuit in the United States District Court, District of Nevada, against Shuffle Master Inc. ("Shuffle Master" or the "Company") (Nasdaq:SHFL) and certain officers, on behalf of purchasers of the common stock of the Company during the period from December 22, 2006 through March 12, 2007, inclusive (the "Class Period"). The complaint alleges violations of Section 10(b) and Section 20(a) of the Securities Exchange Act, and Rule 10b-5 promulgated there under.
Shuffle Master is a Minnesota corporation headquartered in Nevada. The Company, through its subsidiaries, engages in the development, manufacture, sale and marketing of 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 took place on the last day of the fiscal year ended October 31, 2006, as if it were a sale to a third party.
In particular, defendants: (1) through the October 31, 2006 transaction, along with 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 end 2006. The company further admitted that its internal controls were defective. In response, Shuffle Master's stock fell 8%.
If you are a shareholder who purchased the securities of Shuffle Master during the Class Period, you have until August 3, 2007 to ask the Court to appoint you as lead plaintiff for the class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca