NEW YORK, June 15, 2005 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of all purchasers of the common stock of DreamWorks Animation SKG, Inc. (NYSE:DWA) acquiring the stock between January 3, 2005 and May 10, 2005, both dates inclusive (the "Class Period").
The action, entitled, "Presuti v. DreamWorks Animation SKG, Inc., et al.", Case No. 05-cv-4229(GHK)(VKB), is pending in the United States District Court for the Central District of California, and names as defendants, the Company and certain of its senior officers and directors. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that DreamWorks, a developer and producer of CG animated films, and the other defendants failed to disclose and misrepresented material adverse facts which were known to defendants or recklessly disregarded by them. In particular, the Complaint alleges that during the Class Period, defendants made materially false and misleading statements regarding the Company's business and prospects, including statements regarding the continuing strong sales of its "Shrek 2" DVD. Then, on May 10, 2005, one or more Company insiders leaked inside information to a reporter at Newsweek. The same day, Newsweek ran a story titled "Insiders say DreamWorks is about to report surprisingly bad results," which stated that "the studio expects to report earnings substantially below the 60 cents per share that Wall Street analysts have estimated for the quarter."
After the market closed on May 10, 2005, DreamWorks released its financial and operating results for Q1 2005 and reported revenues and earnings far short of previous guidance and analysts' expectations of earnings of $0.58 a share on revenue of $175.2 million. As a result of the defendants' false statements, DreamWorks' stock price traded at inflated levels during the Class Period, increasing to as high as $41.09 per share. However, when the truth was revealed in the Newsweek story and DreamWorks' press release on May 10, 2005, the Company's shares fell to below $33 per share.
If you are a member of the class described above, you may, not later than August 1, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whesq.com