Eldorado Resorts, Inc. Class Action Lawsuit
- Company Name
- Eldorado Resorts, Inc.
- Stock Symbol
- Class Period
- March 1, 2019 to September 2, 2019
- Motion Deadline
- November 22, 2019
- District of New Jersey
On September 23, 2019, the Eldorado Resorts, Inc. class action lawsuit was filed charging Eldorado and certain of its officers with violations of the Securities Exchange Act of 1934. The Eldorado class action lawsuit was commenced in the District of New Jersey on behalf of purchasers of Eldorado securities between March 1, 2019 and September 2, 2019 (the “Class Period”) and is captioned Elberts v. Eldorado Resorts, Inc., No. 2:19-cv-18230.
Eldorado is a casino entertainment company that owns and operates 26 properties in 12 states. In aggregate, Eldorado’s properties feature approximately 26,700 slot machines, 750 table games, and over 12,500 hotel rooms.
The Eldorado class action lawsuit alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Eldorado’s business and operations, including that several of Eldorado’s executive officers, including Chief Executive Officer Thomas Reeg, had engaged in improper trading with respect to the securities of another publicly traded company. As a result of this information being withheld from the market during the Class Period, Eldorado securities traded at artificially inflated prices of more than $53 per share.
Then on September 3, 2019, Eldorado filed a Registration Statement on Form S-4 with the U.S. Securities and Exchange Commission (“SEC”) in connection with the proposed merger of Eldorado and Caesars Entertainment Corp., which disclosed that several of Eldorado’s officers had received subpoenas from the SEC relating to an investigation into their trading in the securities of another publicly traded company. According to the Form S-4, during Caesars’ due diligence in connection with the proposed merger, “representatives of [Eldorado] informed representatives of Caesars that Mr. Reeg . . . had received a subpoena from the SEC in May 2019 relating to its ongoing investigation of trading in the securities of another” company. A subsequent article in the New York Post revealed that the undisclosed company mentioned in the Form S-4 was IRadimed Corp. According to the article, one of Eldorado’s directors was also on IRadimed’s board of directors. On this news, the price of Eldorado shares fell $3.09 per share, or 8%, to close at $35.42 per share on September 3, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Eldorado securities during the Class Period to seek appointment as lead plaintiff in the Eldorado class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Eldorado class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Eldorado class action lawsuit. An investor’s ability to share in any potential future recovery of the Eldorado class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Eldorado class action lawsuit or have questions concerning your rights regarding the Eldorado class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the Eldorado class action lawsuit must be filed with the court no later than November 22, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.