A class action lawsuit has been filed on behalf of all who purchased securities of DreamWorks Animation SKG Inc. between October 27, 2004 and May 10, 2005. The complaint alleges that the toon studio violated sections of the Securities Exchange Act of 1934 by failing to disclose information about declining sales of the Shrek 2 DVD. The action is pending in the United States District Court for the Central of California against defendants DreamWorks, DreamWorks Animation CEO Jeffery Katzerberg and chairman of the Board Roger Enrico.
DreamWorks is accused of artificially inflating the price of DreamWorks securities in releases before announcing on May 10 that the Shrek sequel did not meet the its retail sales expectations for the first quarter and that the company recorded little revenue from the blockbuster film during the period. The news caused DreamWorks Animation stock to drop from $36.50 to close at $32.05.
Abbey Gardy, LLP has been named as one of the law firms retained to represent the plaintiffs. A copy of the complaint filed in this action is available from the Court, or can be viewed at www.abbeygardy.com.