SAN DIEGO and GLENDALE, Calif., Aug. 6, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of DreamWorks Animation SKG Inc. (NASDAQ: DWA) has filed a federal securities fraud class action complaint in the U.S. District Court for the Central District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between October 29, 2013 and July 29, 2014 (the "Class Period"). DreamWorks is engaged in the development and production of animated films and their associated characters worldwide.
DreamWorks Is Accused of Failing to Take "Turbo" Movie Write-Down in a Timely Manner
According to the complaint, during a conference call with analysts on July 29, 2014, DreamWorks revealed that the U.S. Securities and Exchange Commission had begun an investigation regarding the $13.5 million write-down taken by the company in relation to the under-performing animated film, Turbo, released in July 2013. During that conference call, DreamWorks also announced its second quarter earnings, showing a net loss of $15.4 million compared to the second quarter 2013 and revenue of $122.3 million, a year-over-year decline of more than $90 million. On this news, DreamWorks shares dropped almost 12%, to close at $19.98 on July 30, 2014.
The complaint further alleges that DreamWorks (i) failed to timely take a write-down for the Turbo movie, and as a result the company's net income for fiscal year 2013 was materially overstated, and (ii) without adequate internal control of financial reporting the company's financial statements were materially false and misleading at all relevant times.
DreamWorks Investors Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in DreamWorks and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/dreamworks-animation-skg-inc
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP