Tuesday 20th May 2008 Poker Machine Maker Pays The Price
In a move which has rewritten the Australian stock market rule books it has been revealed that Poker machine manufacturer Aristocrat Leisure has agreed a compensation package with investors, believed to be in the region of AUS$150 million to AUS$170 million. So what is it all about?
The proposed payout comes at the end of a lengthy and often bitter legal battle by shareholders of the group. The claim goes back 6 years to a time when Aristocrat Leisure was found to have overstated the financial position of the company and overall profitability. This prompted a wave of claims by investors which resulted in a class action that recently reached the courtrooms of Australia.
Just as the judge in the case was about to complete her summing up and give the jury the chance to consider a verdict, the directors of Aristocrat Leisure came forward with the proposed compensation package. The net cost to the company will be AUS$40 million (legal costs) with the actual compensation payments being made by the company’s insurers.
While the offer has to be confirmed by the courts, this would seem a formality and finally investors who were disadvantaged by the company will see some compensation.
Source: gambling_CMS_tmark938
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