The law firm of Girard Gibbs LLP (http://www.girardgibbs.com) announces that it is investigating an alleged securities fraud by IMAX Corporation (Nasdaq:IMAX) (“IMAX” or the “Company”) and its executives between February 17, 2006 and August 9, 2006.
According to the investigation, IMAX issued a series of material misrepresentations in its filings with the Securities and Exchange Commission (“SEC”) and press releases which failed to disclose that: (1) IMAX’s financial results including its revenue recognition were materially misrepresented; (2) IMAX lacked adequate internal controls; and (3) IMAX’s financial statements were presented in violation of Generally Accepted Accounting Principles.
On August 9, 2006, IMAX announced that it was responding to an informal inquiry from the SEC regarding the Company’s timing of revenue recognition, including its application of multiple element arrangement accounting in its revenue recognition for theatre systems. IMAX’s share price fell by 40.6% or $3.91 in reaction to this news.
If you purchased or otherwise acquired IMAX securities between February 17, 2006 and August 9, 2006, you may have suffered losses. If you wish to discuss your rights as an investor, please visit our website, http://www.girardgibbs.com/imax, or contact Aaron Sheanin, Esq. toll free at (866) 981-4800.