HAVERFORD, Pa., Aug. 22 LAWFUEL – Law News Network — The law firm of Chimicles & Tikellis LLP commenced a securities class action lawsuit in United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired publicly traded securities of IMAX Corporation (“IMAX” or the “Company”) (Nasdaq: IMAX) between February 17, 2006 and August 9, 2006, inclusive (the “Class Period”).
The lawsuit was filed against IMAX and certain officers and directors (“Defendants”).
The Complaint alleges that IMAX and certain of its officers violated
federal securities laws by issuing a series of materially false and
misleading statements concerning IMAX’s financial health. Specifically, the Complaint alleges that in the fourth quarter of 2005 IMAX recognized
revenue from theaters that were not yet opened in order to inflate its
financial results in order to attract a buyer or merging partner for the
Company. On August 9, 2006, IMAX announced that it was responding to an
informal inquiry from the SEC with respect to its accounting, in
particular, revenue recognition issues. Shares reacted negatively to this
news, falling from $9.63 per share to $5.73 per share, a decline of 40.5%.
Chimicles & Tikellis LLP encourages anyone who has purchased IMAX
securities between February 17, 2006 and August 9, 2006 to contact
plaintiff’s counsel Kimberly M. Donaldson or Timothy N. Mathews toll free
at 1-888-805- 7848 or via email at mail@chimicles.com. If you would like
more information about this Action, or would like to join this action
online, please visit http://www.chimicles.com.
If you are a member of the class, you may, no later than October 10,
2006, apply to the United States District Court for the Southern District
of New York to be appointed as a Lead Plaintiff. A Lead Plaintiff is a
representative, chosen by the Court, who acts on behalf of other class
members in directing the litigation. The Private Securities Litigation Act of 1995 directs Courts to assume that the class member(s) with the “largest financial interest” in the outcome of the case will best serve the class in this capacity. Any member of the purported class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to
do nothing and 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 a lead plaintiff. You may retain Chimicles & Tikellis LLP, or other counsel of your choice, to serve as your counsel in this Action. For more detailed information about the Chimicles Firm, please visit its website at http://www.chimicles.com.
Chimicles & Tikellis LLP specializes in complex litigation with an
emphasis on securities, antitrust and consumer cases, and has offices in
Haverford, PA and Wilmington, DE. Chimicles & Tikellis LLP is a leading
class action law firm with a national practice that strives to advance the interests of its clients by recovering money they have lost and by
obtaining other appropriate relief to which they are entitled. The firm has succeeded in recouping hundreds of millions of dollars of losses for its clients.
CONTACT:
Kimberly M. Donaldson, Esq.
Chimicles & Tikellis LLP
+1-610-642-8500
KimDonaldson@chimicles.com
