SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/dreamworksanimation/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of DreamWorks Animation SKG, Inc. (“DreamWorks”) (NASDAQ:DWA) common stock during the period between October 29, 2013 and July 29, 2014 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from August 1, 2014. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/dreamworksanimation/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges DreamWorks and certain of its officers and directors with violations of the Securities Exchange Act of 1934. DreamWorks creates entertainment, including CG animated feature films, television specials and series, and live entertainment properties, for audiences around the world.
The complaint alleges that defendants issued materially false and misleading statements during the Class Period about the Company’s business, operations, prospects and performance. Specifically, defendants failed to disclose that DreamWorks improperly accounted for its animated film, Turbo, prior to recording a $13.5 million impairment charge, improperly accounted for the impairment charge related to the Turbo movie, and lacked adequate internal control over financial reporting.
The complaint alleges that following its commercially successful release of the movie The Croods in March 2013, DreamWorks released Turbo, an animated film about a snail whose dream to become the fastest snail in the world comes true. In North America, on its opening day, Turbo earned $5.8 million in 3,552 theaters, the third lowest all-time opening for a DreamWorks computer-animated film, and when adjusted for inflation and 3D prices, the smallest opening weekend audience ever for a DreamWorks picture. Turbo ultimately grossed $83 million in North America and $199 million in other countries, for a worldwide total of $282 million. The film cost $127 million to produce, but because DreamWorks spent between $150 million and $175 million to market it, the film had one of the lowest gross revenues in DreamWorks’ history.
On February 26, 2014, the Company filed its Annual Report on Form 10-K with the SEC in which it admitted that Turbo had not “recovered [its] production costs” and that due to Turbo’s poor performance the Company had “recorded an impairment charge totaling $13.5 million.” On July 29, 2014, during a conference call with analysts, DreamWorks revealed that the Company was under investigation by the SEC for the $13.5 million impairment charge the studio took in relation to the poor performance of the Turbo movie. The Company indicated that it was cooperating with the SEC, but would not elaborate on the scope or extent of the investigation. On this news, shares in DreamWorks fell $2.68 per share, or almost 12%, on extremely heavy trading volume, to close at $19.98 per share on July 30, 2014.
Plaintiff seeks to recover damages on behalf of all purchasers of DreamWorks common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, with more than 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest jury verdict ever in a securities class action. Please visit http://www.rgrdlaw.com for more information.