IGT Faces Derivative Suit After 85% Stock Drop

Law360, New York (July 12, 2010, 3:39 PM EDT) -- An International Game Technology shareholder has launched a derivative securities suit against 16 current and former directors, alleging that misstatements about company finances and imprudent spending on technology upgrades led to an 85 percent drop in market capitalization.

IGT stakeholder Phillip Sprando targeted company CEO Patti S. Hart, Chief Financial Officer Patrick W. Cavanaugh and others in a suit filed Friday in the U.S. District Court for the District of Nevada, just six miles from the company's Reno headquarters. Sprando, an Oregon resident, says the directors...
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