NEW YORK, Sept. 21, 2006 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action in the Southern District of New York on behalf of shareholders who purchased or otherwise acquired the securities of IMAX Corporation ("IMAX" or the "Company") (Nasdaq:IMAX) between February 17, 2006 and August 9, 2006, inclusive (the "Class Period").
The complaint alleges that IMAX and certain of its officers violated federal securities laws by issuing a series of materially false and misleading statements concerning IMAX's financial health. Specifically, the Complaint alleges that in the fourth quarter of 2005 IMAX recognized revenue from theaters that were not yet opened in order to inflate its financial results in order to attract a buyer or merging partner for the Company.
On August 9, 2006, IMAX announced that it was responding to an informal inquiry from the SEC with respect to its accounting, in particular, revenue recognition issues. On this news, shares of IMAX dropped from $9.63 per share to $5.73 per share, a decline of 40.5%.
If you are a member of the class, you may, no later than October 10, 2006, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative, chosen by the Court, who acts on behalf of other class members in directing the litigation.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.