NEW YORK, June 13, 2005 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Central District of California on behalf of all purchasers of DreamWorks Animation SKG, Inc. ("DreamWorks" or the "Company") (NYSE:DWA) securities between October 27, 2004 and May 10, 2005, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning DreamWorks' financial results and business prospects. Specifically, the complaint alleges that DreamWorks failed to disclose that: (a) sales of Shrek 2 DVDs were declining; (b) retailers were returning to the Company massive amounts of unsold Shrek 2 DVD inventory; (c) the Company was shipping out inventory far in excess of actual demand in order to record revenue; and (d) therefore, defendants' opinions and statements concerning the Company's current and future earnings lacked a reasonable basis at all times. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period. On May 10, 2005, however, following the Company's announcement that Shrek 2 sales fell short of the Company's retail sales expectations for the first quarter, shares of DreamWorks common stock dropped from $36.50 to close at $32.05.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired DreamWorks securities between October 27, 2004 through May 10, 2005, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
If you purchased DreamWorks securities during the Class Period, you may, not later than August 1, 2005, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on theClass Action Newsline at www.primezone.com/ca.
-0- Faruqi & Faruqi, LLP Antonio Vozzolo, Esq. Beth A. Keller, Esq. 320 East 39th Street New York, NY 10016 (877) 247-4292 or (212) 983-9330 Avozzolo@faruqilaw.com Bkeller@faruqilaw.com