Scott + Scott, LLC Files Suit Against Great Wolf - IPO Could Now Mean “Investors Punished Often”

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Firm recognized worldwide as leading the global fight against Refco has alleged similar IPO negligence as water parks drain.

Scott + Scott, LLC (http://www.scott-scott.com), at the direction of clients, filed a securities fraud class action on Monday 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”). 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. Scott + Scott, LLC recently filed the case against those who allegedly committed fraud against Refco on its Initial Public Offering.

If you purchased Great Wolf securities you may contact Scott + Scott, LLC for representation. If you wish to discuss this action or have questions concerning this notice or your rights as a class member, please contact Scott + Scott for more information. Scott + Scott will provide class members with case materials, answer all questions regarding participation and rights and assist with other services the firm provides. There is no cost or fee to you. Contact Scott + Scott partner Neil Rothstein (nrothstein@scott-scott.com, 800/332-2259, ext. 22 or cell 619/251-0887). Institutional Investors may also contact the firm at InstitutionalInvestors@scott-scott.com .

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.

The plaintiff is represented by Scott + Scott, LLC, which has significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide. Cases currently being litigated and/or investigated by Scott + Scott, LLC include: Refco, Inc.; Guidant Corp.; Abbott Laboratories; Halliburton; TRM Corp.; and Tempur-Pedic Int’l, among others. Its success has brought shareholders hundreds of millions of dollars in cases against Mattel, Royal Dutch/Shell, Sprint, ImClone and others.

Media Contact:

Neil Rothstein

800-332-2259

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