Global Cash Access Holdings Inc (NYSE: GCA) Investor Securities Class Action Lawsuit 04/11/2008

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Company Name(s): 
Global Cash Access Holdings
Case Name: 
Global Cash Access Holdings Shareholder Class Action Lawsuit 04/11/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the District of Nevada
Deadline To File for Lead: 
Date Settled: 
Settlement Amount: 
Deadline to Participate in Settlement: 

June 25, 2010 - The court approved the settlement.

March 17, 2010 - The court preliminarily approved the settlement.

February 17, 2010 - Parties filed a stipulation of settlement.

September 29, 2009 - The court ordered the de-consolidation of certain cases.

June 29, 2009 - The court denied defendants' motions to dismiss.

November 14, 2008 - Defendants filed motions to dismiss.

September 18, 2008 - The court ordered the transfer of this case, including all cases consolidated thereunder, to the U.S. District Court for the District of Nevada.

August 18, 2008 - The lead plaintiff filed an amended consolidated complaint.

June 26, 2008 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

June 10, 2008 - Lead plaintiff motions were filed.

June 10, 2008 - Another investor filed a complaint.

April 11, 2008 - An investor in shares of Global Cash Access Holdings Inc (NYSE: GCA) filed a lawsuit in the U.S. District Court for the Southern District of New York against Global Cash Access Holdings Inc over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on behalf of all persons who purchased or acquired shares of common stock of Global Cash Access Holdings Inc, pursuant or traceable to Global Cash Access Holdings Inc’s initial public offering which commenced on September 22, 2005, and who held such shares of GCA common stock until November 14, 2007.

The claims asserted arise under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, respectively 15 USC, 77k, 77l(a)(2) and 77o, and have been asserted against: Global Cash Access Holdings Inc; current and former directors; controlling shareholders M&C International and Summit Partners LP; and underwriters Goldman Sachs & Co Inc and JP Morgan Securities Inc.

The complaint alleges that: (a) Global Cash Access Holdings Inc’s internal controls were deficient causing its finance and accounting departments to be unable to accurately calculate the amount of commissions payable to the Global Cash Access Holdings Inc's customers; (b) Global Cash Access Holdings Inc had improperly computed the amount of commissions it was required to pay many of its customers resulting in Global Cash Access Holdings Inc failing to comply with contractual terms; and (c) Global Cash Access Holdings Inc’s expenses (i.e. cost of revenues) during 2005 were understated resulting in an overstatement of gross profit margins and net income. The subsequent disclosure of these facts resulted in the decline of the Global Cash Access Holdings Inc’s (NYSE:GCA) common stock price, causing the plaintiff and the other members of the Class to suffer damages.