| Company: | Great Wolf Resorts Inc. |
| Ticker Symbol: | NYSE: WOLF |
| Class Period: | December 14, 2004, to July 28, 2005 |
| Date Filed: | Nov-22-05 |
| Lead Plaintiff Deadline: | Jan-20-06 |
| Court: | Western District, WI |
| Allegations: |
A securities fraud class action has been filed in the United States District Court for the
Western District of Wisconsin (05-C-0687-C) against Great Wolf Resorts Inc.
("Great Wolf" or the "Company") (NYSE: WOLF). Presently, the class is defined
in the complaint drafted by the Scott firm as those who purchased Great Wolf
securities between December 14, 2004, and July 28, 2005, inclusive (the "Class
Period"), but any purchaser of Great Wolf securities can contact the firm as
class periods can change as information is revealed. Great Wolf owns,
operates, and develops drive-to family resorts featuring indoor water parks
and other family-oriented entertainment activities. The Company is
headquartered in Madison, Wisconsin.
The complaint alleges that defendants' registration statements issued in connection with the Company's 2004 Initial Public Offering ("IPO") contained untrue statements of material fact. According to the complaint, at the root of these issues was the fact that the Company provided misleading, unreliable and unpredictable quarterly and annualized guidance based on its preferred non-GAAP EBITDA measure. Since defendants' EBITDA number was allegedly unreliable, both the Company's business prospects and in fact the value of the underlying business was in doubt to the extent this defective measure was used for valuation purposes to convince investors to buy the Company's stock during the IPO. The complaint was filed today alleging that during the Class Period, Great Wolf and certain individual defendants violated provisions of the federal securities laws (Securities Act of 1933 and the Securities Exchange Act of 1934).
On July 28, 2005, investors' interests drowned as they learned the true magnitude of the Company's earnings shortfall and its cause - the alleged unreliability of defendants' EBITDA projections. Worse, analysts concluded that defendants were fully aware of the true magnitude of the earnings miss when they were out marketing clients at the end of June but failed to publicly disclose the materiality of the problem at that time. According to the Associated Press, analysts point to the company's inability to handle the increased competition, saying it contributed to other problems, such as a second-quarter earnings miss and questions about the company's internal controls. On the news of July 28, 2005, the price of the Company's stock plunged $6.12 to $13.65, on extremely heavy volume of 6.0 million shares. The price has continued to decline since July and today traded at $8.79.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
At LawyersandSettlements.com, it is our goal to keep you informed about important legal cases and settlements. We are dedicated to helping you resolve your legal complaints.
The complaint alleges that defendants' registration statements issued in connection with the Company's 2004 Initial Public Offering ("IPO") contained untrue statements of material fact. According to the complaint, at the root of these issues was the fact that the Company provided misleading, unreliable and unpredictable quarterly and annualized guidance based on its preferred non-GAAP EBITDA measure. Since defendants' EBITDA number was allegedly unreliable, both the Company's business prospects and in fact the value of the underlying business was in doubt to the extent this defective measure was used for valuation purposes to convince investors to buy the Company's stock during the IPO. The complaint was filed today alleging that during the Class Period, Great Wolf and certain individual defendants violated provisions of the federal securities laws (Securities Act of 1933 and the Securities Exchange Act of 1934).
On July 28, 2005, investors' interests drowned as they learned the true magnitude of the Company's earnings shortfall and its cause - the alleged unreliability of defendants' EBITDA projections. Worse, analysts concluded that defendants were fully aware of the true magnitude of the earnings miss when they were out marketing clients at the end of June but failed to publicly disclose the materiality of the problem at that time. According to the Associated Press, analysts point to the company's inability to handle the increased competition, saying it contributed to other problems, such as a second-quarter earnings miss and questions about the company's internal controls. On the news of July 28, 2005, the price of the Company's stock plunged $6.12 to $13.65, on extremely heavy volume of 6.0 million shares. The price has continued to decline since July and today traded at $8.79.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Register your Securities Complaint
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