CONSHOHOCKEN, Pa.– LAWFUEL – The Law News Network -Dec. 5, 2005–Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the District of Nevada, on behalf of persons who purchased or otherwise acquired publicly traded securities of Mikohn Gaming Corporation (d/b/a Progressive Gaming International Corporation) (“Mikohn” or the “Company”) (NASDAQ:PGIC) between February 22, 2005 and October 19, 2005, inclusive, (the “Class Period”). The lawsuit was filed against Mikohn, Russel H. McMeekin and Michael A. Sicuro (“Defendants”).
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at [email protected] and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than January 31, 2005 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants failed to disclose that the impact of Financial Accounting Standards Board’s accounting Standard (“SFAS”) 153 on the Company’s public filings.
On October 20, 2005, Defendants revealed that because the Company failed to properly account for two non-monetary transactions in accordance with SFAS 153, the Company expected to report a loss of $0.09 per share rather than a gain of $0.08 to $0.10 per share, as Defendants had previously reported. The Company changed the accounting treatment after its auditor, BDO Seidman, informed the Company that it had to comply with SFAS 153 and that it could not recognize the revenues in the third quarter from these two transactions. In reaction to this news, shares of Mikohn fell dramatically, falling nearly 30% in very heavy volume.
If you bought Mikohn securities between February 22, 2005 and October 19, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 753-2796 to speak with an advisor.