mistakes in consecutive years. (Defs.’ Mot. to Dismiss at 12.) The Court considers all of these arguments in its comparative evaluation of scienter. 2. GAAP Violations Plaintiffs provide evidence that Shuffle Master has admitted to various GAAP violations during and prior to the Class Period which may lend to a determination that Defendants possessed the requisite scienter under the PSLRA. Defendants correctly note that restatements and GAAP violations alone do not raise a strong inference of scienter; however, the Ninth Circuit has held that “significant violations of GAAP standards can provide evidence of scienter so long as they are pled with particularity.” In re Daou Sys., Inc., 411 F.3d 1006, 1022 (9th Cir.2005); In re McKesson HBOC, Inc., 126 F.Supp.2d 1248, 1273 (N.D.Cal.2000) (<HOLDING>). In its Restated 2006 10-K, Shuffle Master
holding that scienter requirement was met where gaap violations led to restatement and individual defendants were aware of weak internal controls holding that the fact that the company violated gaap when viewed in light of significant overstatements of revenue tended to support inference of scienter holding that failure to follow gaap without more is insufficient to establish scienter holding that significant gaap violations described with particularity may provide powerful indirect evidence of scienter holding that a rule 10b5 claim must be stated with particularity