NEW YORK--(BUSINESS WIRE)--Abraham, Fruchter & Twersky, LLP announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased the common stock of DreamWorks Animation SKG, Inc. (“DreamWorks” or the “Company”)(DWA) between October 29, 2013 and July 29, 2014, inclusive (the “Class Period”).
If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Arthur J. Chen of Abraham, Fruchter & Twersky, LLP toll free at (800) 440-8986, or via e-mail at firstname.lastname@example.org or email@example.com.
The complaint alleges that defendants made materially false and misleading statements during the Class Period regarding their business operations. More specifically, the complaint alleges that the Company failed to disclose that DreamWorks improperly took a $13.5 million impairment write-down related to their animated film Turbo, materially overstated the Company’s net income for the fiscal year of 2013, and lacked adequate internal controls over financial reporting.
In March 2013, DreamWorks released an animated film called Turbo, which performed poorly at the box office. However, the Company maintained through public statements and SEC filings that the movie was profitable. On February 26, 2014, the Company admitted that Turbo did not recover its production costs and the Company had to record an impairment charge totaling $13.5 million. On July 29, 2013, after the market closed, DreamWorks disclosed that the Securities & Exchange Commission is investigating its accounting for the $13.5 million write-down in connection with the poor performance of the Turbo movie. On the following day, shares of DreamWorks dropped from a previous day close of $22.66 per share to close at $19.98 per share, a decline of approximately 11.8%, on abnormally high volume.
If you purchased the common stock of DreamWorks between October 29, 2013 through July 29, 2014 and would like to serve as lead plaintiff in this action, you must move the Court no later than September 30, 2014. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
Abraham, Fruchter & Twersky, LLP is a litigation boutique with extensive experience prosecuting investor claims. The firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services. Please visit us at http://www.aftlaw.com for more information.
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