The Securities Sleuth

TAXING PROBLEMS

JUNE 20, 2007

In early April of this year, New Jersey-based Jackson Hewitt Tax Service, Inc. (JTX) disclosed that the U.S. Department of Justice sued the operators of more than 125 Jackson Hewitt Tax Service Inc. tax preparation offices, accusing them of cheating the U.S. Treasury out of more than $70 million through a "pervasive and massive series of tax-fraud schemes." Investigators accused the companies of encouraging the filing of fraudulent tax returns, using such means as claiming bogus deductions and fuel tax credits, seeking refunds based on phony earnings statements, and "massive fraud" related to the federal earned income tax credit.

Franchises in Georgia, Illinois, Michigan and North Carolina were sued.

The market reaction was swift.

On April 3, 2007, JTX stock closed at $26.53 per share, down $5.87 per share or approximately 18%.

It appears that investors who purchased between January 4, 2006 and April 3, 2007 are affected.

Trouble for Shuffle Master Investors

Shuffle Master, Inc. (NASDAQ: SHFL), through its subsidiaries, develops, manufactures and markets technology- and entertainment-based products for the gaming industry.

On March 12, 2007, Shuffle Master admitted that it had improperly booked the October 31, 2006 transaction, and that it would have to restate reported results for the fourth quarter and fiscal year 2006. The Company further admitted that its internal controls were defective. In response to this news, Shuffle Master's stock fell 8%.

Specifically, it is alleged that the Company improperly inflated its quarterly earnings per share by 50% and year end earnings per share by 35% and the fraudulent booking of inter-company transactions arose out of Shuffle Master's tax avoidance scheme, whereby the Company transferred profits that were otherwise taxable in the U.S. to foreign countries where profits would be taxed at a much lower rate, if at all.

Investors who purchased SHFL stock between March 20, 2006 and March 12, 2007 are affected.

We are investigating both of these cases and if you are an affected investor you may want to contact us.

Now with respect to securities cases that have recently settled. If you are an affected investor - you purchased any of these stocks during the relevant class period, you may wish to contact the claims administrator to obtain additional information. Remember, if you don't submit your claim form, you won't receive your share of any settlement.

Catalina Marketing Corp. (POS)
Class Period: October 14, 1999 to August 25, 2003
Claim Deadline: May 21, 2007
Claims Administrator: Gilardi

Spear & Jackson, Inc. (SJCK)
Class Period: February 1, 2002 to April 1, 2003
Claims Deadline: June 26, 2007
Claims Administrator: Garden City

Information regarding other recent settled cases, including the cases listed below can be found at www.securitiessleuth.com.

Winstar Communications (WCII)
Ibis Technology Corp. (IBIS)
Astropower, Inc. (APWR)

Again, you should contact the claims administrator (rather than us). However, if you are an affected investor in any of the companies under investigation, you many wish to contact us so that you can consider your options.

Likewise, if you happen to be aware of corporate restatements or other financial fraud -- especially if you're a victim -- you're encouraged to contribute to the Sleuth by giving your own tip-offs at http://securitiessleuth.typepad.com or by e-mailing info@securitiessleuth.com.

You can also call Mark McNair at 877-511-4717. If you have a friend or colleague you think would benefit from The Sleuth, please pass along this issue and ask them to sign up at
http://www.cartville.com/app/join.asp?MerchantID=47994.

Warmest regards,

Mark McNair