LOS ANGELES, Aug. 22, 2002 (PRIMEZONE) -- A class action lawsuit was filed in United States District Court for the Central District of California, Western Division on behalf of purchasers of Walt Disney Company ("Disney" or the "Company") (NYSE:DIS) securities between August 15, 1997 and May 15, 2002, inclusive (the "Class Period"). You may obtain a copy of the complaint from the Court or from Stull, Stull & Brody.
The complaint alleges that Disney and certain of its officers and directors violated the Securities Exchange Act of 1934. The Company is a diversified worldwide entertainment company.
During the Class Period, defendants failed to disclose the existence, details, and potential effects of a pending lawsuit over merchandising rights concerning "Winnie the Pooh." Those effects include the potential payout by Disney of hundreds of millions of dollars in royalty payments in as well as the much more serious threat of possibly terminating the Company's merchandising agreement for Winnie the Pooh products which represents several billion dollars a year in revenue. Throughout most of the class period, Disney's SEC filings avoided all disclosure of the Pooh litigation. On May 15, 2002, defendants finally came clean about the amount of claims involved and the potential fallout of the Pooh litigation. As various media sources gradually reported this news, Disney stock price fell, declining 28% in the two months after the disclosure.
Plaintiffs seek to recover damages on behalf of class members and are represented by the law firm of Stull, Stull & Brody who has significant experience and expertise in prosecuting class actions on behalf of investors and shareholders.
If you are a member of the class described above, you may, no later than October 15, 2002, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. 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 the 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 Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact: Marc L. Godino at Stull, Stull & Brody at 888-388-4605 or via e-mail at info@secfraud.com or on the law firm's web-site at www.secfraud.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.