SOURCE: Abraham, Fruchter & Twersky, LLP

August 19, 2009 17:34 ET

Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against MGM Mirage

NEW YORK, NY--(Marketwire - August 19, 2009) - Abraham, Fruchter & Twersky, LLP today announced that a class action law suit has been commenced in the United States District Court for the District of Nevada on behalf of purchasers of MGM Mirage ("MGM" or the "Company") (NYSE: MGM) common stock between August 2, 2007 and March 5, 2009, inclusive (the "Class Period").

The complaint charges MGM and certain of its officers and directors with violating Section 10(b) of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants made materially false and misleading statements concerning MGM's financial strength, liquidity and the prospects for the development of MGM's CityCenter. This caused MGM's common stock price to be artificially inflated, allowing MGM insiders to sell close to $90 million worth of MGM stock at higher prices than they would otherwise have obtained. As the true facts about MGM's deteriorating financial condition and the Company's inability to fund the CityCenter project leaked into the market, the inflation in the price of MGM stock was removed, causing plaintiff and the members of the Class damages.

Plaintiff seeks to recover damages on behalf of all purchasers of MGM common stock during the Class Period. The Plaintiff is represented by Abraham, Fruchter & Twersky, LLP which has extensive experience in securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services. If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Jack G. Fruchter or Arthur J. Chen of Abraham, Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at jfruchter@aftlaw.com or achen@aftlaw.com, respectively. If you wish to serve as lead plaintiff, you must move the Court no later than October 18, 2009. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

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Contact Information

  • Contact:

    Jack G. Fruchter
    Arthur J. Chen
    Abraham, Fruchter & Twersky, LLP
    One Penn Plaza, Suite 2805
    New York, N.Y. 10119
    Telephone: (212) 279-5050