Shareholders of Las Vegas casino MGM Mirage have launched a shareholder class action lawsuit. Their lawsuit is aimed at former MGM Mirage Chairman and Chief Executive Officer Terry Lanni, current Chairman and CEO Jim Murren, Chief Financial Officer Dan D'Arrigo and CityCentre CEO Bobby Baldwin. The case mainly involves shareholders who owned stock in MGM Mirage between August 2007 and March 2009 where the share has dropped from $74.89 to $1.89.

In a classic case of corporate mismanagement, the executives mentioned all sold their shares before December 2007 when the price was still relatively higher than it is now. Bobby Baldwin sold his 502,962 share of MGM Mirage stock between Aug 07 and Dec 2007 for $43.84 million. Jim Murren sold his 200,000 shares during the same time for $17.47 million. Terry Lanni sold his 50,000 shares on December the 7th 2007 for $4.58 million. All of them avoided the massive devaluing of the stock and cashed out at the just right time.

MGM Mirage's current share price is at $8.44. The shareholders are alleging that MGM Mirage put out a series of false and misleading statements concerning the company's financial position and the forecasts for expansion projects in Dubai and Macau. The company is currently restructuring to avoid bankruptcy as the gambling industry continually works to ride through a tough recession.

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