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Case Status:    DISMISSED    
On or around 09/12/2006 (Date of order of final judgment)

Filing Date: October 21, 2005

By Order dated September 12, 2006, the Court granted the Defendants’ motion to dismiss without prejudice to the Plaintiff filing an amended complaint within 30 days. On October 16, 2006, the Plaintiff filed a Stipulation and Proposed Order of Dismissal, and on October 20, 2006, Judge Jeffrey S. White granted the Stipulation of Dismissal. The case is now closed.

On March 22, 2006, the Court granted the motion to appoint Lead Plaintiff and Lead Counsel. On May 26, 2006, the Plaintiff filed an Amended Complaint, and the Defendants responded by filing a motion to dismiss the Amended Complaint on June 29, 2006.

The original complaint alleges defendants Pixar and certain of its executive officers violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period.

Specifically, the complaint alleges that Pixar creates, develops, and produces animated films and related products. During the Class Period, the Company had a co-production agreement with The Walt Disney Company ("Disney") for the development and production of animated feature-length theatrical motion pictures. Defendants claimed that one such film, The Incredibles, was a "Box-Office smash hit" and would also be successful in the home video market. According to the complaint, defendants stated, among other things, that during the Class Period, sales of The Incredibles home videos, including DVDs and VHS, would enable the Company to produce earnings of at least $0.15 per share by the second fiscal quarter of 2005. Unbeknownst to investors, however, defendants' statements were materially false and misleading because defendants knew, or recklessly disregarded, that recent trends in the home video market indicated a slow down in the sales of new home video releases and therefore, increased returns of unsold copies from retailers that would negatively impact the Company's earnings. In fact, according to an article published in The Wall Street Journal, a new DVD release would realize approximately 50-70% of its total sales in its first week, compared to 33% and a steady increase in sales thereafter five years ago. Defendants' response to the change in sales trends of home videos was to flood the market with units of The Incredibles home video, far in excess of what retailers could sell, prior to and during the first weeks of release to maximize sales. Defendants knew or recklessly disregarded, however, that this strategy would result in a disproportionate number of early sales followed by a disproportionate number of product returns, but failed to make the necessary adjustments to account therefor. As a result of defendants' wrongful and illegal scheme, the price of Pixar securities became artificially inflated during the Class Period and enabled Company insiders, including defendants Bax and Catmull, to sell hundreds of thousands of shares of their personally held Pixar stock for over $27.1 million in proceeds.

The complaint further alleges that on or around June 30, 2005, the last day of the Class Period, the Company issued a press release lowering its second quarter 2005 earnings guidance to $0.10 per diluted share from $0.15, the difference of approximately $6 million in net income, as a result of disappointing sales of The Incredibles home video units and an increase in the Company's reserves for returns. As a result of this news, the price of Pixar common stock fell more than $9.00 per share to $43.00 from the prior day's close of almost $52.00 per share, representing a one-day decline of over 17% on very heavy trading volume. On August 26, 2005, defendants announced that the SEC had commenced an investigation of Pixar in connection with reported sales of The Incredibles DVD and that the SEC had "requested information leading up to the filmmaker's report earlier this month of lower second-quarter earnings." As a result of this news, Pixar shares fell an additional $1.01 per share to close at below $42.00.

COMPANY INFORMATION:

Sector: Services
Industry: Motion Pictures
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PIXR
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. California
DOCKET #: 05-CV-04290
JUDGE: Hon. Jeffrey S. White
DATE FILED: 10/21/2005
CLASS PERIOD START: 01/18/2005
CLASS PERIOD END: 06/30/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  2. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  3. Law Offices of Brian M. Felgoise, P.C.
    Esquire at 261 Old York Road, Suite 423, Law Offices of Brian M. Felgoise, P.C., PA 19046
    215.886.1900 · securitiesfraud@comcast.net
  4. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  5. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  6. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  7. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  8. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  9. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 05-CV-04290
JUDGE: Hon. Jeffrey S. White
DATE FILED: 05/26/2006
CLASS PERIOD START: 02/10/2005
CLASS PERIOD END: 06/30/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & GoldBerg LLP
    1925 Century Park East, Suite 2100, Glancy Binkow & GoldBerg LLP, CA 90067
    310-201-9150 · info@glancylaw.com
  2. Law Offices of Bruce G. Murphy
    265 Llwyds Lane, Law Offices of Bruce G. Murphy, FL 32963
    561.231.4202 ·
  3. Milberg Weiss Bershad & Schulman LLP
    355 South Grand Avenue, Suite 4170, Milberg Weiss Bershad & Schulman LLP , CA 90071
    213.617.9007 213.617.9185 · info@milbergweiss.com
  4. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  5. Murray, Frank & Sailer LLP
    275 Madison Ave 34th Flr, Murray, Frank & Sailer LLP, NY 10016
    212.682.1818 212.682.1892 · email@murrayfrank.com
  6. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  7. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  8. Stull, Stull & Brody (Los Angeles)
    10940 Wilshire Boulevard - Suite 2300, Stull, Stull & Brody (Los Angeles), CA 90024
    310.209.2468 ·
No Document Title Filing Date
No Document Title Filing Date