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Class Action for Shareholders

The online casino gambling industry is a tricky business but exaggerations and overstatements apparently don’t get you very far. The Aristocrat Leisure gaming manufacturer just lost a class action lawsuit against the company on the grounds that the company announced extremely optimistic predictions for the company’s yearly profits – then when they didn’t materialize the company’s shareholders had just a bit to say about the blunder.

Australia has a growing land and online casino gambling market that has really taken off in recent years and Aristocrat Leisure was an established gaming manufacturer in the Australian market that also had begun to look into interests in other emerging gambling markets like South America. According to the class action law suit, Aristocrat Leisure only presented a rosy picture of the company’s prospects in this market despite a marked downturn in the prospects within this market.

Some South America markets have proven very dicey when it comes to accepting foreign land and online casinos and Aristocrat Leisure was a victim of the unpredictable nature of a growing market. And that in and of itself is not where the shareholders took exception but rather the decision by the company to not disclose that the South American interests were heading south. The shareholders ended up losing a significant part of their investment in the process and filed the class action suit to recoup losses.

The court ordered reward for the shareholders is one of the largest on record with the shareholders receiving a settlement that gives them a recoup on their funds – every dollar lost before interest and a huge $0.80 return on their investment. The settlement came in at US $125.7 million.