NEW YORK, Aug. 15, 2006 (PRIMEZONE) -- Roy Jacobs & Associates announces that it has filed a lawsuit on behalf of purchasers of the securities of IMAX Corp. ("IMAX" or "the Company") (Nasdaq:IMAX) from February 17, 2006 through August 9, 2006 ("the Class Period"). The action was filed in the United States District Court for the Southern District of New York against IMAX, and certain of its officers and directors.
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The Complaint alleges violations of the federal securities laws through the dissemination of false and misleading statements and omissions concerning IMAX's financial health and business prospects. During February and March 2006, the Company issued press releases touting the Company's financial success, and indicated the Company's willingness to explore financial options. A press release issued as late as May 9, 2006 continued to mislead investors concerning IMAX's true financial condition.
Then on August 9, 2006, the Company shocked the market by announcing that it was being investigated by the SEC and that the Company had uncovered a "material weakness" in its revenue accounting. The press release also stated the Company had yet to find an investor to effectuate a merger or purchase. After these announcements the Company's stock substantially dropped. The Complaint further alleges that IMAX and its top executives knew during the Class Period that revenue was being improperly recognized, but failed to make the necessary adjustments, thus artificially inflating the stock.
If you purchased IMAX stock during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased IMAX stock from February 17, 2006 through August 9, 2006. You are not required to have sold your IMAX stock in order to claim damages, or to serve in this role. All motions for appointment as Lead Plaintiff must be filed with the Court no later than October 10, 2006.
If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, please contact Roy Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca