This is a securities class action lawsuit against Global Cash Access Holdings, Inc; current and former directors; controlling shareholders M&C International and Summit Partners, L.P.; and underwriters Goldman Sachs & Co., Inc. and JP Morgan Securities Inc.
This securities class action is on behalf of all investors who purchased common stock in GLobal Cash Access pursuant or traceable to Global Cash's initial public offering which commenced on September 22, 2005, and who held such shares of Global Cash common stock until November 14, 2007.
The class action complaint alleges that:
(a) Global Cash's internal controls were deficient causing its finance and accounting departments to be unable to accurately calculate the amount of commissions payable to the Company's customers;
(b) Global Cash had improperly computed the amount of commissions it was required to pay many of its customers resulting in Global Cash failing to comply with contractual terms; and
(c) Global Cash 's expenses (i.e. cost of revenues) during 2005 were understated resulting in an overstatement of gross profit margins and net income.
The subsequent disclosure of these facts resulted in the decline of Global Cash's common stock price, causing Plaintiff and the other members of the Class to suffer damages.
Name (Stock Symbol)
Global Cash Access Holdings, Inc. (GCA)
Global Cash Access Holdings, Inc. is a provider of cash access products and related services to the gaming industry.
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