RADNOR, Pa., Nov. 1 – LAWFUEL – The Law News Network — The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of all securities purchasers of Pixar (Nasdaq: PIXR – News; “Pixar” or the “Company”) between January 18, 2005 and June 30, 2005 inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected]
The complaint charges Pixar, Steven P. Jobs, Edwin E. Catmull and Simon T. Bax with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that defendants, in an effort to demonstrate positive earnings and inflate the Company’s sales figures, shipped millions of excess copies of “The Incredibles” home videos to the market; (2) that defendants’ were aware that the video shipments significantly exceeded the levels of consumer demand, and as a result were eventually forced to increase the reserve for video returns; (3) that the Company lacked adequate internal controls; and (4) that as a consequence of the foregoing defendants’ statements with respect to the forecasted sale of “The Incredibles” home video units lacked in any reasonable basis.
On June 30, 2005, Pixar announced an update to its fiscal second quarter 2005 guidance. Pixar stated that following a review of the most current domestic and international home video sales data for “The Incredibles,” the Company updated its second quarter home video projections to increase its reserves for returns. On this news, shares of Pixar fell $6.99 per share, or 13.97 percent, on July 1, 2005, to close at $43.06 per share. On August 26, 2005, Pixar revealed that it was under an SEC investigation.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than December 20, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.