HAVERFORD, Pa., Aug. 22 /PRNewswire/ — The law firm of Chimicles & Tikellis LLP commenced a securities class action lawsuit in United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired publicly traded securities of IMAX Corporation ("IMAX" or the "Company") (NASDAQ:IMAX) between February 17, 2006 and August 9, 2006, inclusive (the "Class Period"). The lawsuit was filed against IMAX and certain officers and directors ("Defendants").
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. Shares reacted negatively to this news, falling from $9.63 per share to $5.73 per share, a decline of 40.5%.
Chimicles & Tikellis LLP encourages anyone who has purchased IMAX securities between February 17, 2006 and August 9, 2006 to contact plaintiff’s counsel Kimberly M. Donaldson or Timothy N. Mathews toll free at 1-888-805- 7848 or via email at firstname.lastname@example.org.
If you are a member of the class, you may, no later than October 10, 2006, apply to the United States District Court for the Southern District of New York 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. The Private Securities Litigation Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Any member of the purported class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. 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 Chimicles & Tikellis LLP, or other counsel of your choice, to serve as your counsel in this Action.