LOS ANGELES, Nov. 10, 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 Northern District of California on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Pixar (the "Company") (Nasdaq:PIXR) between January 18, 2005 and June 30, 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 to 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 Pixar and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning Pixar's operations and prospects caused the Company's stock price to become artificially inflated, inflicting damages on investors. Pixar engages in the creation, development, and production of animated films and related products worldwide. The Complaint alleges defendants' Class Period representations were materially false and misleading when made because: (a) defendants had intentionally flooded the market with millions of copies of "The Incredibles" home videos, far in excess of actual or forecast demand, in an effort to capitalize on a very narrow sales window; (b) this flooding strategy had the effect of artificially inflating reported "The Incredibles" home video sales in the days immediately following its release, yet at the expense of future sales and with the effect of increasing foreseeable home video returns; (c) as a direct result of this undisclosed flooding strategy, defendants exposed the Company to significant undisclosed risks, including the risk that large numbers of unsold home video units would be returned to the Company; (d) defendants' forecasts for the sale of "The Incredibles" home video units lacked any reasonable basis throughout the Class Period; and (e) Pixar lacked an internal system of controls adequate for the purpose of preventing the dissemination of materially false and misleading information.
On June 30, 2005, Pixar lowered its second quarter 2005 earnings guidance to $0.10 per diluted share, down from $0.15, as a result of disappointing sales of "The Incredibles" home videos and an increase in Pixar's reserves for video returns. In reaction to this news, Pixar shares fell from a close of $50.05 per share on June 30, 2005, to close at $43.06 per share on July 1, 2005. On August 26, 2005, Pixar announced that the SEC had commenced an investigation in connection with Pixar's reported sales of "The Incredibles" videos, and that the SEC had "requested information leading up to the filmmaker's report earlier this month of lower second-quarter earnings."
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 December 20, 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 Michael Goldberg, 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.