WMS Industries Inc. hit by Investor Lawsuit over alleged Securities Laws Violations

May 25, 2011 - PRLog -- An investor in WMS Industries Inc.  shares filed a lawsuit in the United States District Court for the Northern District of Illinois against WMS Industries Inc. over alleged violations of Federal Securities Laws.

If you purchased shares of WMS Industries Inc.  between November 1, 2010 and April 11, 2011, you have certain options and there are strict and short deadlines running. Deadline: July 22, 2011. WMS stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.


According to the complaint the plaintiff alleges that WMS Industries Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between November 1, 2010 and April 11, 2011 current business and financial condition, including its forecasted financial results, that were each materially false and misleading when made because defendants failed to disclose the following true facts which were known to defendants or recklessly disregarded.
WMS Industries’s 12months Total Revenue rose from $539.80million reported on June 30, 2007 to $765.10million reported on June 30, 2010. Its Net Income increased over the same time frame from $48.90million to $112.90million.

Shares of WMS Industries Inc.  rose from as low as $16.02 per share in March 09 to as high as $50.02 in April 2010.

The plaintiff claims that WMS Industries Inc, in the face of a known industry-wide slowdown in demand and lengthening of the replacement cycle for gaming products, continued to report that it had and would continue to distinguish itself from its competitors by posting sales revenue and margin gains without the benefit or need for the recovery of overall demand or the casino gaming replacement cycle.

Then on April 11, 2011, WMS Industries Inc pre-announced its third quarter 2011 financial results, stating that it had missed Wall Street earnings projections by $0.11 per share, reporting 0.42 as opposed to consensus estimates of $0.51. WMS Industries also reported that its revenue forecast for the third quarter of 2011 would be cut by up to $24 million and revenues for fiscal 2011 would be cut by up to $60 million. In addition, WMS Industries reported that it did not expect demand to recover for the remainder of fiscal 2011 or 2012 and thus cut its forecasted fiscal 2012 revenue estimates by up to $120 million. As a result of these disclosures, so the plaintiff, WMS’s stock price declined more than 17% to close at $30.01 on 9.8 million shares traded, down from a close of $36.22 on April 11, 2011.

WMS shares continued to lose value and traded during May as low as $31.71 per share.

Those who purchased shares of WMS Industries Inc. (Public, NYSE-WMS) between November 1, 2010 and April 11, 2011, have certain options and there are strict and short deadlines running. Deadline: July 22, 2011. WMS stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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