Eldorado Resorts, Inc. (NYSE: ERI)
A class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all those who purchased Eldorado Resorts, Inc. (NYSE: ERI) between March 1, 2019 and September 2, 2019 (the “Class Period”)
The complaint 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.
If you are a current shareholder and/or purchased stock during the period between March 1, 2019 to September 2, 2019 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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