According to the law firm press release, DreamWorks Animation SKG, Inc. ("Dreamworks" or the Company) is a Delaware corporation engaged in the development, production, and exploitation of animated films and their associated characters worldwide. The Company was founded in 1985 and is headquartered in Glendale, California. Shares of DreamWorks trade on the NASDAQ Exchange under the ticker symbol "DWA".
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) DreamWorks improperly accounted for the Turbo movie prior to the write-down; (ii) DreamWorks improperly accounted for the write-down related to the Turbo movie; (iii) the Company lacked adequate internal and control over financial reporting; and (iii) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On July 29, 2014, during a conference call with analysts, DreamWorks Animation revealed that the Company is under investigation by the Securities and Exchange Commission for the $13.5 million write-down the studio took in February in relation to the poor performance of Turbo. The Company indicated that it is cooperating with the SEC but would not elaborate on the scope of the extent of the investigation.
On the news, shares in DreamWorks fell $2.68 or almost 12%, on extremely heavy trading volume, to close at $19.98 on July 30, 2014.
On October 22, 2014, the Court issued an Order consolidating cases, and appointing lead Plaintiff and lead Counsel. Lead Plaintiff filed a consolidated Complaint on November 25.
On April 1, 2015, the Court issued an Order granting Defendants' motion to dismiss. Plaintiffs were given leave to file an amended Complaint. Plaintiffs did not file an amended Complaint. Thus this case was dismissed on April 24.
