Fraud. Shareholders Sue Alliance Gaming claiming the corporation took advantage of its artificially inflated stock price at the expense of investors. According to the complaint, Alliance issued a series of materially false statements that artificially inflated its share price and then allowed certain executives to sell $3.6 million in shares. Then on June 8th, the company lowered earnings due to various reasons estimating a drop in earnings of ~$.08 a share. Since this report the stock price has dropped 25%.

"The defendants actively concealed from the public that the company was experiencing massive problems [and] delays associated with the company's wide area progressive games in Nevada due to regulatory hold-ups," said Lerach Coughlin Stoia & Robbins, in a statement, calling the company's previous earnings guidance "grossly inflated."