NEW YORK, June 3 – LAWFUEL – The Law News Network — Abbey Gardy, LLP commenced a Class Action lawsuit on behalf of all purchasers of securities of DreamWorks Animations SKG, Inc. (“DreamWorks” or the “Company”) (NYSE: DWA) between October 27, 2004 and May 10, 2005, inclusive (the “Class Period”).
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by
issuing a series of material misrepresentations to the market during the Class
Period thereby artificially inflating the price of DreamWorks securities. The
action captioned Pfeffer v. DreamWorks Animation SKG, Inc., et al., is
pending in the United States District Court for the Central of California
against defendants DreamWorks, Jeffery Katzerberg (Chief Executive Officer)
and Roger Enrico (Chairman of the Board). A copy of the complaint filed in
this action is available from the Court, or can be viewed
http://www.abbeygardy.com.
The Complaint alleges that starting on October 27, 2004 and continuing
until May 10, 2005, defendants made a series of materially false and
misleading statements regarding the about Dreamworks business and earnings.
During the Class Period the Company filed its Form 10-K for its year ended
December 31, 2004. In addition, the Company issued press releases on November
8, 2004, March 17, 2005 and May 10, 2005. The Complaint alleges that
throughout the Class Period, defendants failed to disclose and misrepresented
the following material adverse facts which were known to defendants or
recklessly disregarded by them: a) that sales of Shrek2 DVD’s were declining;
(b) retailers were returning to the Company massive amounts of unsold Shrek 2
DVD inventory; (c) the Company was shipping products far in excess of the
actual demand for those products; and (e) as a result of the foregoing,
defendants’ opinions and statements concerning the Company’s current and
future earnings lacked a reasonable basis at all times.
On May 10, 2005, Dreamworks announced that Shrek 2 did not meet the
company’s retail sales expectations for the first quarter. The Company
reported for the first time that the “sales shortfall resulted in a higher
level of returns than expected. As a result, DWA recorded no revenue from
Shrek 2 in the quarter other than from licensing and merchandising.” On this
news the price of DreamWorks stock dropped from $36.50 to close at $32.05.
Plaintiff seeks to recover damages on behalf of all those who purchased or
otherwise acquired DreamWorks securities during the Class Period. If you
purchased or otherwise acquired DreamWorks securities during the Class Period,
and either lost money on the transaction or still hold the securities, you may
wish to join in the action to serve as lead plaintiff. If you purchased
DreamWorks securities during the Class Period, you may, no later than August
1, 2005 request that the Court appoint you as lead plaintiff.
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 plaintiffs.” Your ability to share in any
recovery is not, however, affected by the decision whether or not to serve as
a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent
the Class. The attorneys at Abbey Gardy, LLP have extensive experience in
securities class action cases, and have played lead roles in major cases
resulting in the recovery of hundreds of millions of dollars to investors. If
you would like to discuss this action or if you have any questions concerning
this Notice or your rights as a potential class member or lead plaintiff, you
may contact:
Susan Lee or
Nancy Kaboolian, Esq.
Abbey Gardy, LLP
212 East 39th Street
New York, New York 10016
(212) 889-3700
(800) 889-3701 (Toll Free)
Or e-mail Susan Lee at slee@abbeygardy.com
Web Site: http://www.abbeygardy.com
