Settlements and Verdicts

Earnings Outlook

Melbourne, Australia: (May-06-08) A class action lawsuit was brought against Aristocrat Leisure Ltd, an Australian gaming machine maker, by shareholders who claimed that the company failed to update the market on its earnings outlook. Sources stated that the dispute arose when the company's downgrades to its profit forecasts in 2003 resulted in a 75% share price slide. Market experts stated that the suit was the first shareholder class action tied to continuous disclosure obligations to go to trial in Australia. They said that the suit set precedents and helped bolster other class actions against companies whose shares crashed in 2007. Australian Financial Review, the country's leading financial magazine reported that while the finer points of the deal were still being worked out, the company is set to resolve the class action suit with an A$396 million ($377 million USD) payout to shareholders. [REUTERS: ARISTOCRAT TO SETTLE A$396MLN CLASS ACTION-REPORT]

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