HARTFORD, Conn., June 4, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Nevada on behalf of all persons who purchased or otherwise acquired the common stock of Shuffle Master Inc. ("Shuffle Master" or the "Company") (Nasdaq:SHFL) between December 22, 2006 through March 12, 2007, inclusive (the "Class Period").
The Complaint alleges that Shuffle Master, a company that engages in the development, manufacture, sale and marketing of technology and entertainment-based products for the gaming industry, and certain of its officers and directors violated Federal Securities laws. It is alleged that Defendants inflated reported profits, by 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. Specifically, Defendants: (i) 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 (ii) 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. On this news, Shuffle Master's stock fell 8%.
If you are a member of the class, you may, no later than August 3, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard, P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snilaw.com.