SAN DIEGO, Sept. 22, 2014 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed by a current investor in shares of Dreamworks Animation Skg Inc (DWA) over alleged breaches of fiduciary duties by certain officers and directors.
If you purchased shares of Dreamworks Animation Skg Inc (DWA) in early 2013 or earlier and currently hold any of those DWA shares, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff says the defendants allegedly hid Dreamworks Animation Skg Inc's financial performance from investors and, ultimately, damaged its reputation in the industry. The plaintiff says that Dreamworks Animation Skg Inc reported a $57 million write-down for Mr. Peabody and Sherman just one month after the movie's release, but waited seven months to report a $13.5 million write-down for its movie Turbo.
The plaintiff claims that instead of acknowledging Turbo's failure and appropriately adjusting the revenues and future cash flows that were expected from the film after the write-down, defendants allegedly continued to present an overstated image of the company's financial health and business prospects through July 2014.
On July 29, 2014, during a conference call with analysts, Dreamworks Animation Skg Inc revealed that the Company is under investigation by the Securities and Exchange Commission for the $13.5 million write-down the studio took in February in relation to the poor performance of Turbo.
The plaintiff says that the revelations concerning the company's write-down of one of only two movies produced in 2013, the SEC's investigation and Fox's inability to recoup its costs exposed Dreamworks Animation Skg Inc's true business health and caused its market capitalization to decline over 40%, erasing more than $1.1 billion in value. Indeed, Shares of Dreamworks Animation Skg Inc (DWA) declined from over $35 per share in early 2014 to under $20 per share during August 2014.
In addition, the plaintiff claims that the defendants' wrongdoing exposed the company to the risk of hundreds of millions of dollars in damages in addition to the costs and liability the company is already facing in the SEC investigation.
Those who are current long-term investors in shares of Dreamworks Animation Skg Inc have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.