SOURCE: Brower Piven, A Professional Corporation

June 21, 2011 11:03 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $500,000 From Investment in WMS Industries Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the July 25, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - Jun 21, 2011) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of the common stock of WMS Industries Inc. ("WMS" or the "Company") (NYSE: WMS) during the period between November 1, 2010 and April 11, 2011, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than July 25, 2011 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that, contrary to its reports, in the face of a known industry-wide slowdown in demand and lengthening of the replacement cycle for gaming products 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, the Company's purported current "execution" on business operations was faltering and could not drive and support revenue and profitability guidance; the industry-wide weak replacement cycle had negatively impacted the Company's sales and margin growth and could not be offset by currently flawed execution and demand for WMS's gaming machines; and as a result of the above, the Company did not have a reasonable basis for its revenue and margin forecasts for fiscal 2011 in light of known negative business and industry trends. According to the complaint, after, on April 11, 2011, the Company pre-announced its third quarter 2011 financial results, stating that it had again missed Wall Street earnings projections by $0.11 per share, reporting $0.42 as opposed to consensus estimates of $0.51, 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, and 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, the value of WMS's stock declined significantly.

If you have suffered a net loss for all transactions in WMS Industries Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact