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Abraham, Fruchter & Twersky, LLP Files Class Action Lawsuit Against Global Cash Access Holdings, Inc.

Apr 11, 2008 - 12:36:01 PM

News Source MARKET WIRE

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NEW YORK, NY -- (MARKET WIRE) -- 04/11/08 -- Abraham, Fruchter & Twersky, LLP commenced aclass action lawsuit in the United States District Court for the SouthernDistrict of New York (Case No. 08-CV-3516 (SWK)) (the "Court") on behalf ofa class (the "Class") of all persons who purchased or acquired shares ofcommon stock of Global Cash Access Holdings, Inc. (NYSE: GCA) ("GCA" or the"Company"), pursuant or traceable to the Company's initial public offering("IPO") which commenced on September 22, 2005, and who held such shares ofGCA common stock until November 14, 2007. The claims asserted arise underSections 11, 12(a)(2) and 15 of the Securities Act of 1933, respectively 15U.S.C. §§ 77k, 77l(a)(2) and 77o, and have been asserted against: GCA;current and former directors Kirk Sanford, Karim Maskatiya, RobertCucinotta; controlling shareholders M&C International and Summit Partners,L.P.; and underwriters Goldman Sachs & Co., Inc. and JP Morgan SecuritiesInc.

The complaint alleges that: (a) the Company's internal controls weredeficient causing its finance and accounting departments to be unable toaccurately calculate the amount of commissions payable to the Company'scustomers; (b) GCA had improperly computed the amount of commissions it wasrequired to pay many of its customers resulting in the Company failing tocomply with contractual terms; and (c) GCA's expenses (i.e. cost ofrevenues) during 2005 were understated resulting in an overstatement ofgross profit margins and net income. The subsequent disclosure of thesefacts resulted in the decline of the Company's common stock price, causingPlaintiff and the other members of the Class to suffer damages.

If you purchased or otherwise acquired GCA common stock pursuant ortraceable to the IPO you may, no later than June 10, 2008, request that theCourt appoint you as lead plaintiff. A lead plaintiff is a representativeparty that acts on behalf of other class members in directing thelitigation. In order to be appointed lead plaintiff, you must meet certainlegal requirements, including the Court's determination that the Classrepresentative's claim is typical of the claims of other Class members, andthat the Class representative will adequately represent the Class. Undercertain circumstances, one or more class members may together serve as"lead plaintiffs."

The attorneys at Abraham, Fruchter & Twersky, LLP have extensive experiencein securities class action cases, and the firm is ranked among the topclass action firms, in terms of recoveries achieved, by the most recentsurvey of class action law firms conducted by Institutional ShareholderServices. If you would like to discuss this action or have any questionsconcerning this Notice or your rights as a potential class member or leadplaintiff, you may contact: Philip Taylor, Esq. of Abraham, Fruchter &Twersky, LLP, One Penn Plaza, Suite 2805, New York, New York 10119, bytelephone at (212) 279-5050, by facsimile at (212) 279-3655 or by e-mail atptaylor@aftlaw.com.

Contact:
Philip T. Taylor, Esq.
Abraham, Fruchter & Twersky, LLP
One Penn Plaza, Suite 2805
New York, New York 10110
Telephone: (212) 279-5050
Facsimile: (212) 279-3655



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