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Case ID: 4308 | Stocks | 06/14/2005
A class action has been filed against DreamWorks Animation SKG, Inc. (NYSE:DWA), certain of its officers and directors by stockholders who purchased the company's common stock between October 27, 2004 and May 10, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
According to a press release dated June 2, 2005, the Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of DreamWorks securities. The action names as defendants DreamWorks, its Chief Executive Officer and its Chairman of the Board. Specifically, the Complaint alleges that starting on October 27, 2004 and continuing until May 10, 2005, defendants made a series of materially false and misleading statements regarding the about Dreamworks business and earnings. During the Class Period the Company filed its Form 10-K for its year ended December 31, 2004. In addition, the Company issued press releases on November8, 2004, March 17, 2005 and May 10, 2005. The Complaint alleges that throughout the Class Period, defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: a) that sales of Shrek2 DVD's were declining;(b) retailers were returning to the Company massive amounts of unsold Shrek 2DVD inventory; (c) the Company was shipping products far in excess of the actual demand for those products; and (e) as a result of the foregoing, defendants' opinions and statements concerning the Company's current and future earnings lacked a reasonable basis at all times. The complaint further alleges that on or around May 10, 2005, Dreamworks announced that Shrek 2 did not meet the company's retail sales expectations for the first quarter. The Company reported for the first time that the "sales shortfall resulted in a higher level of returns than expected. As a result, DWA recorded no revenue from Shrek 2 in the quarter other than from licensing and merchandising." On this news the price of DreamWorks stock dropped from $36.50 to close at $32.05. If you bought DreamWorks Animation SKG, Inc. securities between October 27, 2004 and May 10, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest Enterasys Networks Inc. (NYSE: ETS) announced today that it has entered into an agreement in principle to settle shareholder litigation filed in 1997 against its predecessor, Cabletron Systems, Inc., and certain Cabletron directors and officers. The settlement, which is subject to execution of a final settlement agreement and subsequent court approval, is expected to be signed by the parties on or before January 25, 2005. A class action has been filed against American Tower Corporation (AMT), certain of its officers and directors by stockholders who purchased the company's common stock between February 1, 2006 and May 24, 2006. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. Several class actions have been filed against mutual fund manager Merrill Lynch & Company, Inc., (various stock symbols) and certain of its officers and directors by stockholders who purchased shares or other ownership units of any of the mutual funds carrying the "Merrill Lynch" brand name through Merrill Lynch, Pierce, Fenner & Smith, Inc., acting as broker between May 20, 1999, and the present. The actions claim that the defendants violated federal securities laws by failing to disclose that the company systematically applied incentives and demerits to induce the brokerage’s mid-level managers to maximize sales of Merrill Lynch funds. Internet service companies are more necessary than ever in today’s high-tech economy. Several class actions have been filed against the officers and directors of telecommunications networking equipment provider Redback Networks, Inc. (Nasdaq: RBAKQ) by stockholders who purchased the company's common stock between April 12, 2000, and October 10, 2003. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The market timing scandal has blighted the market for months now. Several class actions have been filed against investment company Capital Management Investors Holdings, Inc., and its subsidiary, Security Trust Company, and certain of officers and directors by stockholders who purchased shares or other ownership units of Janus Worldwide Fund (Nasdaq:JAWWX), American Funds EuroPacific Fund (Nasdaq:AEPGX), MFS Emerging Growth Fund (Nasdaq:MFEGX), Legg Mason Value Trust Fund (Nasdaq:LMVTX), Artisan International Fund (Nasdaq:ARTIX), AXP International Y Fund (Nasdaq:IDIYX), SEI International Equity A Fund (Nasdaq:SEITX), SEI Emerging Markets I Fund (Nasdaq:SIEMX) or other mutual funds between May 22, 2000 and July 3, 2003. The actions claim that the defendants violated federal securities laws by utilizing an illegal after-hours market-timing scheme to make personal profits at the expense of personal investors. A class action against former directors of embattled Gold Coast company Octaviar is seeking $80 million in damages, and counting. |
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