An investor in WMS Industries shares filed a lawsuit on behalf of those who purchased WMS Industries Inc. securities only between November 1, 2010 and April 11, 2011, WMS Industries Inc for allegedly violating Federal Securities Laws.

Meanwhile an investigation on behalf of current long term investors in WMS Industries Inc. (NYSE:WMS) including those who purchased their WMS shares (also) prior to November 2010 and continue to hold those shares was announced.

The investigation by a law firm on behalf of current long term investors in stocks of WMS Industries Inc. (NYSE:WMS) concerns whether certain current and/or former members of WMS Industries board of directors and certain executive officers can be held liable in connection with the alleged Securities Laws violations in the lawsuit filed by investors who purchased WMS shares only between November 1, 2010 and April 11, 2011. According to the complaint filed in in the United States District Court for the Northern District of Illinois the plaintiff alleges that WMS Industries Inc violated the Securities Exchange Act of 1934 by issuing between November 1, 2010 and April 11, 2011 current business and financial condition, including its forecasted financial results, that were each materially false and misleading when made because defendants failed to disclose the following true facts which were known to defendants or recklessly disregarded.
WMS Industries 12months Total Revenue rose from $539.80million reported on June 30, 2007 to $765.10million reported on June 30, 2010. Its Net Income increased over the same time frame from $48.90million to $112.90million.

Shares of WMS Industries Inc. (NYSE:WMS) rose from as low as $16.02 per share in March 09 to as high as $50.02 in April 2010.

The plaintiff claims that WMS Industries Inc, in the face of a known industry-wide slowdown in demand and lengthening of the replacement cycle for gaming products, continued to report that it had and would continue to distinguish itself from its competitors by posting sales revenue and margin gains without the benefit or need for the recovery of overall demand or the casino gaming replacement cycle.

Then on April 11, 2011, WMS Industries Inc pre-announced its third quarter 2011 financial results, stating that it had missed Wall Street earnings projections by $0.11 per share, reporting 0.42 as opposed to consensus estimates of $0.51. WMS Industries also reported that its revenue forecast for the third quarter of 2011 would be cut by up to $24 million and revenues for fiscal 2011 would be cut by up to $60 million. In addition, WMS Industries reported that it did not expect demand to recover for the remainder of fiscal 2011 or 2012 and thus cut its forecasted fiscal 2012 revenue estimates by up to $120 million. As a result of these disclosures, so the plaintiff, WMSs stock price declined more than 17% to close at $30.01 on 9.8 million shares traded, down from a close of $36.22 on April 11, 2011.