Eldorado Resorts, Inc. (ERI) Accused of Misleading Shareholders
According to the class action complaint for alleged violations of the Securities Exchange Act of 1934, throughout the relevant period of March 1, 2019 to September 2, 2019, Eldorado had continuously reaffirmed the compliance of its directors and employees to the Company’s code of ethics and business conduct, including its policy to comply with all applicable laws, rules, and regulations. Despite Eldorado’s assurances, on September 3, 2019, Eldorado filed a Form S-4 with the SEC disclosing that several of its officers had received a subpoena from the SEC in May 2019 relating to an investigation of improper trading in securities of another publicly traded company. Following this filing, The New York Post revealed that the undisclosed company was IRadimed Corp., which employed a board member of Eldorado as a director. On this news, the stock fell 8% to close at $35.42.