NEW YORK, Jan. 4, 2006 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Northern District of Texas on behalf of shareholders who purchased or otherwise acquired the securities of Blockbuster, Inc. ("Blockbuster" or the "Company") (NYSE:BBI) between September 8, 2004 and August 9, 2005, inclusive (the "Class Period").
If you purchased or otherwise acquired Blockbuster securities on any exchange between September 8, 2004 and August 9, 2005, and sustained damages, you may, no later than January 9, 2006, 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.
Blockbuster engages in the operation and franchise of retail stores that offer prerecorded videos and video games for in-store rental, sale and trade, and also sells other entertainment-related merchandise. Blockbuster also operates an online service offering rental of movies delivered by mail. The complaint charges Blockbuster and certain of its officers and directors with violations of the Securities Exchange Act of 1934, and alleges that throughout the Class Period defendants made materially false and misleading statements to the investing public regarding its financial performance and prospects in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
On February 10, 2004, Viacom announced that it intended to divest itself of its majority interest in Blockbuster (the "Splitoff"). In connection with the Splitoff, Viacom declared a dividend of $5 per share, payable September 3, 2004, to Blockbuster shareholders of record at the close of business on August 27, 2004. The Complaint alleges that in connection with the Splitoff, the defendants failed to disclose and misrepresented that the Splitoff and payment of the special dividend left Blockbuster without the financial resources required to implement its ambitious strategic plan; that the Company was unable to integrate its in-store and online operations due to outdated equipment and inventory tracking issues, that the Company was experiencing difficulties launching its in-store DVD trading program, and that the Splitoff was engineered not to benefit Blockbuster but rather, to allow Viacom to reap hundreds of millions of dollars in proceeds from the pre-Exchange Offer Special Dividend and to reduce the public float of Viacom.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Christopher S. Hinton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.