The complaint alleges that the artificial stock price inflation allowed Alliance to consummate stock-for-stock acquisitions with inflated stock valued at $16 million. During the applicable period, certain individual defendants allegedly sold $3.6 million worth of their own shares at artificially inflated prices.

The action alleges that the defendants actively concealed the following facts from the investing public that: (1) the company was experiencing massive problems and delays associated with its Wide Area Progressive games in Nevada due to regulatory hold-ups; (2) it was experiencing massive delays in its approval and deployment of New York VLT game revisions; (3) its margins were being slashed by increased costs associated with central and traditional determination products; (4) the company’s acquisition of Sierra Design Group was suffering from massive integrative problems; (5) it was losing its competitive position and experiencing problems in its video product game unit; and (6) as a result, the defendants’ forecasts for fiscal year 2004 of $1.04 and fiscal year 2005 of $1.40 per share, were grossly inflated, as it later admitted.

On June 8, 2004, Alliance issued a press release updating its guidance for fiscal year 2004 to the range of $0.96 to $1.00 per share, compared to the prior guidance of $1.04, and for fiscal year 2005 to a range of $1.20 to $1.30 compared to prior guidance of $1.40. On this news, Alliance shares plunged $5.24 to close at $16.15 per share.

If you purchased securities issued by Alliance Gaming Corporation during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by August 16, 2004. 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 your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member.