IMAX Faces Shareholder Class Action Suit

Authored by Mark Hefflinger on August 17, 2006 - 1:24pm.

Radnor, Pa. - A shareholder class action lawsuit has been filed in U.S. District Court in New York against large-screen format movie exhibitor IMAX, which includes allegations the company reported revenue from a number of theaters before they opened, to make its finances more attractive to suitors. IMAX reported on Aug. 9 that it received an inquiry from the SEC regarding the timing of its revenue recognition, which sent the company's shares plummeting over 40% in the following day's trading. The law firm of Schiffrin & Barroway's suit alleges that IMAX recognized revenue in the fourth quarter of 2005 from at least ten theaters before the theaters had actually opened for business.

http://biz.yahoo.com/prnews/060816/phw039.html?.v=58
http://www.sbclasslaw.com
http://www.imax.com