NEW YORK, Nov. 19, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces a class action lawsuit on behalf of purchasers of the securities of JAKKS Pacific, Inc. ("JAKK" or the "Company") (Nasdaq:JAKK) between February 16, 2000 and October 18, 2004, inclusive (the "Class Period").
The complaint charges JAKKS and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that JAKKS had obtained its lucrative WWE licenses through an illegal bribery scheme; (2) that JAKKS' success was predicated upon unsustainable business tactics; (3) that discovery of these unsustainable business tactics would have material impact on the Company's business model; especially, the revenue that JAKKS received from the WWE licenses; (4) that the Company's revenues and earnings would have been significantly less had the Company not engaged in the bribery scheme; and (5) that as a result of JAKKS' unsustainable business tactics and bribery scheme, the terms of the WWE licenses could be materially modified, or revoked in its entirety, and the Company would be exposed to significant liability in the form of damages sought by WWE.
On October 19, 2004, JAKKS issued a press release announcing that it was "engaged in discussions with WWE concerning the restructuring of its toy license and with WWE and THQ with respect to the restructuring of the JAKKS THQ Joint Venture video games license agreement with WWE." On news of this, shares of JAKKS fell from $24.15 per share to $18.81 per share despite the fact that JAKKS reported "record" results for the third quarter and increased its earnings guidance for the fiscal year. Then, later that day, the WWE Action was filed. The filing of the WWE Action was made public after the market closed on October 19, 2004. The next trading day, October 20, 2004, in response to the news that the problems with the WWE were much more pronounced and serious than the impression conveyed by JAKKS' third quarter financial release, the price of JAKKS common stock declined precipitously, falling from $18.81 per share to $12.96 per share on extremely heavy trading volume.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. If you purchased or otherwise acquired ACE Limited securities on any exchange between February 16, 2000 and October 18, 2004, and sustained damages, you may, no later than January 4, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.