RADNOR, Pa., Dec. 2 – LAWFUEL – The Law News Network — The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Western District of Wisconsin on behalf of all securities purchasers of Great Wolf Resorts, Inc. (Nasdaq: WOLF – News; “Great Wolf” or the “Company”) between December 14, 2004, and July 28, 2005, including those who purchased stock pursuant to or traceable to the Company’s initial public offering on or about December 14, 2004 (the “Offering” or the “IPO”), inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected]
The complaint charges Great Wolf, John Emery, James A. Calder, Bruce D. Neviaser, Elan Blutinger, Randy Churchey, Michael M. Knetter, Alissa N. Nolan, Howard Silver, and Marc B. Vaccaro with violations of the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company lacked an adequate internal system of controls necessary to accurately ascertain the Company’s overall condition; (2) that the Company’s quarterly and annual guidance based on non-GAAP EBITDA and Adjusted Net Income concealed the true financial health of the Company; and (3) that as a consequence of the foregoing, the Company’s statements with respect to its future prospects and the intrinsic value of its business lacked in all reasonable basis.
Great Wolf operates as a family entertainment resort company in the United States. The Company owns, operates, and develops drive-to family resorts featuring indoor water parks and other family-oriented entertainment activities. The Company was formed in May 2004 to succeed to the family entertainment resort business of its predecessor companies, The Great Lakes Companies, Inc. and a number of its related entities.
In December 2004, Great Wolf commenced a public offering, with the intent to acquire, from Great Lakes, its resorts and the resorts currently under construction, as well as certain resort development and management operations, in exchange for an aggregate of 14,033,501 shares of its common stock and $97.6 million. In the IPO, the Company issued 14,000,000 shares of stock to public investors and planned to use a portion of the proceeds as partial consideration for the purchase of the resorts.
Investors purchased Great Wolf’s shares pursuant to registration statements, which contained misleading and exaggerated statements regarding Great Wolf’s future prospects and the intrinsic value of the Company’s business. On June 14, 2005, Great Wolf revised downward its previously announced financial guidance while remaining positive about its future prospects. The warning concealed from investors the actual state of affairs at Great Wolf. Then, on July 28, 2005, Great Wolf announced that its results were significantly below the Company’s previously announced guidance. On this news, shares of Great Wolf fell $6.12 per share, or 30 percent, to close, on July 28, 2005, at $13.65 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than January 23, 2006 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.