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Notice of Expanded Class Period and Claims for Class Action Lawsuit on Behalf of Purchasers of Global Cash Access Holdings, Inc. Securities

Posted on: Thursday, 22 May 2008, 11:53 CDT

WILMINGTON, Del., May 22 /PRNewswire/ -- The following was issued today by the law firm of Grant & Eisenhofer P.A.:

This notice relates to prior notices which have been published announcing the filing of class action lawsuits in the United States District Court for the Southern District of New York on behalf of all those who purchased securities of Global Cash Access Holdings, Inc. ("GCA" or the "Company") pursuant to or traceable to the Company's initial public offering ("IPO") which commenced on September 22, 2005, and who held such shares of GCA until November 14, 2007, and asserting claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, respectively 15 U.S.C. Sections 77k, 771(a)(2) and 77o, against the following defendants: GCA; current and former directors Kirk Sanford, Karim Maskatiya, and Robert Cucinotta; controlling shareholders M&C International and Summit Partners, L.P., and underwriters Goldman Sachs & Co., Inc. and JP Morgan Securities Inc. As indicated in those notices, the deadline by which to file motions for appointment as lead plaintiff in the pending lawsuits is June 10, 2008.

Notice is hereby given that, in connection with those motions for appointment as lead plaintiff, the City of Richmond Retirement System, an institutional investor represented by the law firm of Grant & Eisenhofer P.A., will move the court to be appointed lead plaintiff for an expanded class (the "Expanded Class") consisting of all those who purchased GCA securities during the period between September 22, 2005 to November 14, 2007, inclusive, whether or not such purchases are traceable to the Company's IPO (the "Expanded Class Period"). If the City of Richmond Retirement System is appointed lead plaintiff of the Expanded Class, it intends to file a consolidated complaint asserting claims on behalf of the Expanded Class against certain of GCA's officers and directors and other defendants for violating the federal securities laws, including claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. Sections 78j(b), and 78t, respectively, as well as claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. The complaint will allege that: (a) GCA lacked adequate internal controls, or disregarded such controls, resulting in the Company's failure to accurately account for the amount of commissions payable to the Company's customers; (b) GCA improperly calculated such commissions and breached the terms of contracts with its customers; (c) GCA's failure to properly compute and account for commissions payable to the Company's customers resulted in the Company understating its operational expenses and overstating its gross profit margins and net income for the periods ending December 31, 2005, and December 21, 2006, and for the quarters ended March 31 and June 30, 2007; (d) GCA made false and misleading statements regarding the Company's internal controls and financial performance throughout the Expanded Class Period; and (e) the subsequent disclosure of these facts resulted in a significant decline in the Company's stock price, causing substantial damage to members of the Expanded Class.

Any person or entity who purchased GCA debt or equity securities during the Expanded Class Period may, not later than June 10, 2008, file a petition with the court seeking to serve as lead plaintiff of the proposed Expanded Class. To be a member of the proposed Expanded Class, as distinct from lead plaintiff, you need not take any action at this time. For additional information: Press contact: John Garger 212-262-7484. Investors contact: Michael J. Barry, Grant & Eisenhofer P.A., Chase Manhattan Centre, 1201 N. Market Street, Wilmington, Delaware 19801, telephone 302-622-7000.

Grant & Eisenhofer P.A.

CONTACT: Press, John Garger for Grant & Eisenhofer P.A.,+1-212-262-7484; or Investors, Michael J. Barry of Grant & Eisenhofer P.A.,+1-302-622-7000

Source: PRNewswire

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