WMS Industries Inc (NYSE: WMS) Investor Securities Class Action Lawsuit 05/25/2011

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Company Name(s): 
WMS Industries
Case Name: 
WMS Industries Shareholder Class Action Lawsuit 05/25/2011
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: WMS
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/25/2011
Class Period Begin: 
09/21/2010
Class Period End: 
08/04/2011
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
07/25/2011
Date Settled: 
01/21/2014
Settlement Amount: 
$3,700,000
Deadline to Participate in Settlement: 
05/05/2014
Summary: 

May 20, 2014 - The court entered the orders approving the plan of allocation and the motion for attorneys’ fees and expenses.

May 8, 2014 - The court held a final settlement hearing, approved the settlement and dismissed the action with prejudice.

January 21, 2014 - The court preliminarily approved the settlement.

January 3, 2014 - Parties filed a stipulation of settlement.

November 1, 2013 - The U.S Court of Appeals for the Seventh Circuit ordered the judgment of the district court is remanded with limitations.

May 22, 2013 - The lead plaintiff filed a notice of appeal.

April 24, 2013 - The courted granted the defendants' motion to dismiss with prejudice.

October 26, 2012 - The defendants filed a motion to dismiss.

September 12, 2012 - The lead plaintiff filed a second amended complaint.

July 25, 2012 - The court granted the defendants' motion to dismiss without prejudice.

December 8, 2011 - The defendants filed a motion to dismiss.

October 13, 2011 - The lead plaintiff filed an amended complaint on behalf of investors who purchased WMS Industries Inc (NYSE: WMS) common shares between September 21, 2010 and August 4, 2011. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between September 21, 2010 and August 4, 2011.

May 25, 2011 - An investor in shares of WMS Industries Inc (NYSE: WMS) filed a lawsuit in the U.S. District Court for the Northern District of Illinois against WMS Industries Inc over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on behalf of purchasers of WMS Industries Inc (NYSE: WMS) common stock during the period between November 1, 2010 and April 11, 2011 that WMS Industries Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between November 1, 2010 and April 11, 2011 current business and financial condition, including its forecasted financial results, that were each materially false and misleading when made because defendants failed to disclose the following true facts which were known to defendants or recklessly disregarded.

WMS Industries Inc’s 12 months total revenue rose from $539.80 million reported on June 30, 2007 to $765.10 million reported on June 30, 2010. Its net Income increased over the same time frame from $48.90 million to $112.90 million.

Shares of WMS Industries Inc (NYSE: WMS) rose from as low as $16.02 per share in March 09 to as high as $50.02 in April 2010.

The plaintiff claims that WMS Industries Inc, in the face of a known industry-wide slowdown in demand and lengthening of the replacement cycle for gaming products, continued to report that it had and would continue to distinguish itself from its competitors by posting sales revenue and margin gains without the benefit or need for the recovery of overall demand or the casino gaming replacement cycle.

Then on April 11, 2011, WMS Industries Inc pre-announced its third quarter 2011 financial results, stating that it had missed Wall Street earnings projections by $0.11 per share, reporting 0.42 as opposed to consensus estimates of $0.51. WMS Industries Inc also reported that its revenue forecast for the third quarter of 2011 would be cut by up to $24 million and revenues for fiscal 2011 would be cut by up to $60 million. In addition, WMS Industries Inc reported that it did not expect demand to recover for the remainder of fiscal 2011 or 2012 and thus cut its forecasted fiscal 2012 revenue estimates by up to $120 million. As a result of these disclosures, so the plaintiff, WMS Industries Inc (NYSE: WMS) stock price declined more than 17% to close at $30.01 on 9.8 million shares traded, down from a close of $36.22 on April 11, 2011.

As of January 30, 2013 WMS Industries Inc merged with Scientific Games International Inc.