WASHINGTON–LAWFUEL – Class Action Lawsuit News – Sept. 19, 2006–The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. announced today that it has filed a class action complaint in the United States District Court for the Southern District of New York on behalf of purchasers of IMAX Corporation shares (“IMAX”) (NASDAQ:IMAX) during the period from February 17, 2006 through August 9, 2006, inclusive (the “Class Period”).
The Complaint charges IMAX and certain of its officers with violations of the Securities Exchange Act of 1934. It alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them, including: (1) that defendants improperly timed revenue recognition from theatres, including by recognizing revenue in the fourth quarter of 2005 from at least ten theatres before they had opened; (2) that the Company sought to manipulate its financial results because it wanted to attract entities interested in buying or merging with it; (3) that the Company’s financial statements were materially inflated; (4) that the Company lacked adequate internal controls; and (5) that the Company’s financial statements were presented in violation of Generally Accepted Accounting Principles.
On August 9, 2006, after the market closed, IMAX surprised investors by announcing it was responding to an informal inquiry from the SEC regarding the Company’s timing of revenue recognition. IMAX shares responded by plummeting $3.90, or 40.5 percent to close on August 10, 2006 at $5.73 per share on unusually heavy trading volume.
If you purchased IMAX shares during the period from February 17, 2006 through August 9, 2006, inclusive, you may, no later than October 10, 2006, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff. Any member of the proposed class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time. You may visit the firm’s website at www.cmht.com.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia and Chicago, and is active in major litigation pending in federal and state courts throughout the nation.
The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Avenue, N.W.
West Tower – Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600