LOS ANGELES, June 6, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Central District of California on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of DreamWorks Animation SKG, Inc. ("DreamWorks" or the "Company") (NYSE:DWA), between October 27, 2004 and May 10, 2005, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges DreamWorks and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations during the Class Period artificially inflated the Company's stock price, inflicting damages on investors. DreamWorks is principally devoted to developing and producing computer-generated animated feature films. The Complaint alleges that during the Class Period defendants knew or recklessly disregarded that DreamWorks was fueling its impressive reported sales and net income in its core products by, inter alia, (a) shipping products far in excess of the actual demand for those products; (b) forcing its distributors to take unsaleable inventory from DreamWorks; (c) stuffing distributor inventories; and (d) allowing the build-up of a gross imbalance in DreamWorks' distributor inventories. Plaintiff claims defendants misrepresented or failed to disclose that: (i) Shrek2 DVD sales were declining; (ii) retailers were returning to the Company massive amounts of unsold Shrek2 DVD inventory; (iii) the Company was shipping out inventory in order to report the revenue; and (iv) 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, the last day of the Class Period, a DreamWorks press release disclosed that Shrek2 sales did not meet the company's retail sales expectations for the first quarter, which resulted in a higher level of returns than expected. As a result, DreamWorks recorded no revenue from Shrek2 in the first quarter, other than from licensing and merchandising. This news caused the price of DreamWorks stock to drop from $36.50 per share to a close of $32.05 on May 11, 2005.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than August 1, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Lionel Glancy, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.