LAS VEGAS, Jan. 20 -An investor sued Mikohn Gaming Corporation d/b/a Progressive Gaming International Corporation ("PGIC" or the "Company") (Nasdaq: PGIC) for violations of federal securities laws, Berman DeValerio Pease Tabacco Burt & Pucillo announced today.
Berman DeValerio (http://www.bermanesq.com) filed the class action yesterday in the U.S. District Court for the District of Nevada as Case No 2:06-cv-00074. The complaint seeks damages for violations of federal securities laws on behalf of all investors who purchased PGIC common stock between January 23, 2005 and October 19, 2005, inclusive (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/Mikohn-Cplt.pdf.
The lawsuit claims that PGIC and a number of individual defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. Sections 78j(b) and 78t, and the rules and regulations promulgated thereunder, including SEC Rule 10b-5, 17 C.F.R. Section 240.10b-5.
Las Vegas-based PGIC develops, supplies and markets technology-based products for the gaming industry. On January 23, 2005, the Company announced its intention to acquire VirtGame Corp., a gaming software company, in a stock-to-stock swap. The complaint accuses the defendants of misleading investors in a nine-month effort to artificially boost PGIC's stock price so that VirtGame's stockholders would approve the deal.
Specifically, the complaint maintains that the defendants issued positive financial results and enthusiastic future forecasts during the Class Period. At the same time, however, they failed to disclose their improper accounting for two large non-monetary transactions in accordance with the Financial Accounting Standards Board's Accounting Standard ("SFAS") 153. In addition, the defendants issued false financial projections for the third quarter of 2005 that did not reflect the two non-monetary transactions in accordance with Generally Accepted Accounting Principles ("GAAP"). Thus, the Company was able to complete a $20 million acquisition of VirtGame with artificially inflated stock, the complaint alleges.
On October 20, 2005, just 10 days after the VirtGame transition was completed, the defendants announced their failure to properly account for the non-monetary transactions in accordance with SFAS 153 and GAAP. Instead of a gain for the third quarter, as defendants had predicted before the merger, the Company announced it expected to lose $.09 per share. The next day, the complaint says, PGIC's stock fell 30%, dropping from a close of $13.03 on October 19, 2005, to a low of $8.87 on October 20, 2005, before closing at $9.28.
If you purchased PGIC common stock between January 23, 2005 and October 19, 2005, inclusive, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Nicole Lavallee, Esq.
James Magid, Esq.
425 California Street, Suite 2100
San Francisco, CA 94104
(415) 433-3200
sflaw@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than January 31, 2006. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=565. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud and antitrust law violations. The firm has 34 attorneys in Boston, San Francisco and West Palm Beach.
Contact: James Magid, Esq. (415) 433-3200.
