DreamWorks Animation Hit with Class-Action Lawsuit
DreamWorks Animation SKG and certain directors have been named in a class action lawsuit filed on behalf of investors by Milberg Weiss Bershad & Schulman, the law firm said yesterday.
The complaint alleges that the company made materially false and misleading statements with respect to sales of Shrek 2 home video units.
Late last year, DreamWorks reported and forecast continuing strong sales of Shrek 2 in the DVD market. The company was later forced to revise both those forecasts and its corresponding earnings projections downward. DreamWorks’ stock price has since fallen by a third. The Milberg Weiss suit alleges that the company knew that the high sales could not be sustained, and that company insiders profited from the false statements by selling $140 million worth of stock.
[Source: Business Wire]