NEW YORK, Jan. 10, 2006 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a class action suit on behalf of all securities purchasers of Great Wolf Resorts, Inc. (Nasdaq:WOLF) ("Great Wolf" or the "Company") between December 14, 2004, and July 28, 2005, including those who purchased stock pursuant to or traceable to the Company's initial public offering on or about December 14, 2004 (the "Offering" or the "IPO"), inclusive (the "Class Period").
The action, entitled, Paul v. Great Wolf Resorts, Inc., et al., Case No. 06-C-0011-C, is pending in the United States District Court for the Western District of Wisconsin, and names as defendants, the Company, John Emery, James A. Calder, Bruce D. Neviaser, Elan Blutinger, Randy Churchey, Michael M. Knetter, Alissa N. Nolan, Howard Silver, and Marc B. Vaccaro. Additionally, the Complaint names as defendants, Citigroup Global Markets, Inc., A.G. Edwards & Sons Inc., Raymond James & Associates Inc., Calyon Securities (USA), Societe Generale, ThinkEquity Partners, LLC, Rubin Brown Gornstein & Co., LLP, and Deloitte and Touche. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. More specifically, the complaint alleges that, during the Class Period, the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company lacked an adequate internal system of controls necessary to accurately ascertain the Company's overall condition; (2) that the Company's quarterly and annual guidance based on non-GAAP EBITDA and Adjusted Net Income concealed the true financial health of the Company; and (3) that as a consequence of the foregoing, the Company's statements with respect to its future prospects and the intrinsic value of its business lacked in all reasonable basis.
Great Wolf operates as a family entertainment resort company in the United States. The Company owns, operates, and develops drive-to family resorts featuring indoor water parks and other family-oriented entertainment activities. The Company was formed in May 2004 to succeed to the family entertainment resort business of its predecessor companies, The Great Lakes Companies, Inc. and a number of its related entities.
In December 2004, Great Wolf commenced a public offering, with the intent to acquire, from Great Lakes, its resorts and the resorts currently under construction, as well as certain resort development and management operations, in exchange for an aggregate of 14,033,501 shares of its common stock and $97.6 million. In the IPO, the Company issued 14,000,000 shares of stock to public investors and planned to use a portion of the proceeds as partial consideration for the purchase of the resorts. Investors purchased Great Wolf's shares pursuant to registration statements, which contained misleading and exaggerated statements regarding Great Wolf's future prospects and the intrinsic value of the Company's business. On June 14, 2005, Great Wolf revised downward its previously announced financial guidance while remaining positive about its future prospects. The warning concealed from investors the actual state of affairs at Great Wolf. Then, on July 28, 2005, Great Wolf announced that its results were significantly below the Company's previously announced guidance. On this news, shares of Great Wolf fell $6.12 per share, or 30 percent, to close, on July 28, 2005, at $13.65 per share.
If you are a member of the class described above, you may, not later than January 23, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member=s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP Jeffrey M. Norton, Esq. (jmn@whesq.com) 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 http://www.whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca