MADISON, WI-The United States District Court of the Western District of Wisconsin has dismissed in its entirety the pending consolidated class-action complaint against Great Wolf Resorts Inc. alleging that the company violated securities laws. The initial claim was in regard to the company’s 2004 initial public offering and its July 2005 announcement that earnings fell short of expectations for the second quarter of 2005.

In July of last year, the company had a one-day stock price drop of 31% in after reporting a bigger-than-expected loss, which became the subject of a class-action securities fraud suit. Filed by Scott + Scott LLC of Colchester, CT, the class action parties included who bought Great Wolf stock from Dec. 14, the day before the company began trading, and July 28, when it reported its second-quarter earnings.

During that earnings report, the company reported a loss of $2.5 million, or 8 cents a share, which ultimately severed the initial stock price of $17 per share to $13.65 per share. Calling the loss “embarrassing,” CEO John Emery admitted it was more than twice the expected loss the company had anticipated.

In its most current quarter ended March 31, the company reported total revenues of $37.8 million. Despite a slight disruption and minor damage sustained at the company’s Kansas City property, which resulted in lost revenue and additional expenses of between $500,000 and $700,000, Emery said the company’s first quarter was better than analysts’ estimates.

In recent news, the company broke ground on the $100-million, eight-story Great Wolf Lodge in Grapevine, TX. The 450,000-sf, northwoods-themed indoor waterpark resort will be the company’s ninth Great Wolf Lodge location.

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