Case Number: No. 04 C 3530

Practice Area: Securities Fraud & Investor Protection

Case Status: Settled

Settlement Amount: $2 million

Court: United States District Court for the Northern District of Illinois

Berger Montague served as Lead Counsel and obtained a $2 million settlement in this securities fraud class action against Bally Total Fitness Holding Corporation, former officers of the company, and Bally’s auditor, Ernst & Young LLP. The case was litigated in the United States District Court for the Northern District of Illinois.

The lawsuit alleged that Bally and certain officers of the company reported false financial results in Bally’s public financial statements for nearly five years, leading to two separate restatements that involved dozens of misstatements. The lawsuit alleged that Bally intentionally or recklessly overstated revenue and net income, understated expenses, and misrepresented that its financial statements were presented in accordance with Generally Accepted Accounting Principles. The lawsuit further alleged that Ernst & Young performed reckless audits and issued false audit opinions regarding Bally’s financial statements.

If you are an investor and have questions about a potential securities fraud lawsuit, please contact Berger Montague.

About Berger Montague

Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, and Washington, D.C.

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