Krislov & Associates Ltd. Files Class Action Lawsuit Against WMS Industries, Inc.
February 7, 2013 05:05 PM
Krislov & Associates, Ltd. announces a class action law suit filed against WMS Industries, Inc. in the Lake County Illinois Circuit Court, on behalf of all current owners of WMS Industries, Inc. (“WMS”) (NYSE: WMS) common stock.
The complaint alleges that WMS and its directors (“Defendants”) breached their fiduciary duties and failed to maximize shareholder value, by entering into a definitive merger agreement with Scientific Games Corporation (“Scientific Games”), under which Scientific Games will acquire all of the outstanding shares of WMS for $26.00 per share, or a total transaction price of approximately $1.5 billion.
Specifically, the complaint alleges that the price agreed to by the Defendants is too low given WMS’ restructuring for future growth, as well as its recently released 2013 fiscal year first quarter financial results, which indicate a tripling in profits from one year ago. The complaint alleges that WMS has spent extensive resources over the last couple years on promoting and developing various novel online, social and interactive games which have achieved great success in only a matter of a few months. The complaint also alleges that the purchase price fails to account for the substantial investments made by WMS in various gaming licenses, including in Nevada, which Scientific Games currently lacks and will benefit greatly from. As a result of these investments, the complaint alleges that WMS is postured for stronger earnings in the near future, which is not adequately reflected in the purchase price of $26.00 per share.
Additionally, the complaint alleges that the merger agreement prevents WMS from effectively shopping for other bidders and provides lucrative compensation for the directors, while allowing them to maintain their positions on the board of WMS.
Plaintiff seeks to enjoin the merger transaction, and in the event the merger is consummated, to recover damages for the class.
The Plaintiff is represented by Krislov & Associates, Ltd., which has extensive experience in bringing investor and securities class actions. Anyone who currently holds WMS common stock and who is interested in joining this lawsuit is invited to call our firm. Please contact Plaintiff’s counsel, Clint Krislov of Krislov & Associates, Ltd. at (312) 606-0500, or by email at clint@krislovlaw.com.
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