It was pretty bad, given what happened
COLCHESTER, Conn., (PRWEB) November 29, 2005
Scott+Scott, LLC (http://www.scott-scott.com), the first law firm to file a securities fraud action against Great Wolf Resorts Inc. ("Great Wolf" or the "Company") on November 21, 2005, had its allegations supported by an analyst from the well known Baltimore-based investment management firm T. Rowe Price. Further, the Mayor of Sheboygan, Wisconsin, found the allegations to be “serious.”
Presently, the class is defined as those who purchased or acquired Great Wolf securities between December 14, 2004, and July 28, 2005, inclusive (the "Class Period"), but any purchaser or acquirer of Great Wolf securities may 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 and the complaint was filed in the United States District Court for the Western District of Wisconsin (Case No. 05-C-0687-C).
The November 23, 2005 Sheboygan Press article, titled "Blue Harbor Owner Sued for Fraud" and authored by Eric LaRose, quotes Joseph Fath, a T. Rowe Price analyst. "It was pretty bad, given what happened," Fath said. "They admitted that there were internal control problems at the company. They really have no idea where their business is going and where it stands." After claiming that Great Wolf became public too early, Fath continued, "it's a good thing for consumers, but longer term as an investment, in my opinion it's a little more suspect in terms of the ultimate success of it."
If you purchased or acquired Great Wolf securities and 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 (800/332-2259, ext. 22, or cell 619/251-0887). Institutional Investors may also contact the firm.
"The allegations against [Great Wolf] are extremely serious," said Sheboygan Mayor Juan Perez in the Sheboygan Press article. The allegations set forth in the Scott+Scott complaint claim that defendants' registration statements issued in connection with the Company's 2004 Initial Public Offering ("IPO") contained untrue statements of material fact in violation of federal securities laws. 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. Since defendants' guidance 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.
About Scott + Scott
The plaintiff is represented by Scott+Scott, LLC, which has significant experience in prosecuting investor class actions, including other Initial Public Offering cases like the current Refco case (see http://biz.yahoo.com/prnews/051111/nef006.html?.v=33). 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.