This class action is brought on behalf of all persons and entities who purchased Imax shares from February 17, 2006 to August 9, 2006 (the "CLASS PERIOD").
The class action concerns Imax's revenue-recognition practices for the 2005 fiscal year. In early 2006, Imax announced it had successfully completed 14 theatre system installations in the fourth quarter of 2005. Imax also announced an earnings increase of 62% for the fiscal year ended on December 31, 2005. On August 9, 2006, Imax stated that it had recognized revenue in the fourth quarter of 2005 on 10 theatre-system installations in theatres which did not open in that quarter.
The statement of claim alleges that Imax and some of its directors and officers overstated Imax revenues for 2005 thereby artificially inflating the trading price of Imax securities. The value of Imax's securities declined by approximately 40% when the misrepresentations were disclosed.
On December 15, 2008, two motions were heard, one for an order certifying the action as a class action, and one for an order granting leave to assert claims under Part XXIII.1 of the Securities Act. On December 19, 2009, Justice Van Rensburg granted both motions, and certified a class encompassing all persons, wherever they may reside, who purchased Imax shares during the class period. The Defendants then sought leave to appeal Justice van Rensburg's orders granting leave under the Securities Act and certifying a global class. On February 14, 2011, the Court dismissed in its entirety the defendants' motions for leave to appeal Justice van Rensburg's orders.
If you purchased Imax shares during the CLASS PERIOD, please complete the online information form. Your information will be held in strict confidence. By completing the form, you are not retaining Siskinds or Sutts Strosberg, nor do you incur any obligations in connection with this lawsuit. For further information concerning this action, please contact Nicole Young at 1 (800) 461-6166 ext. 2380 or e-mail Nicole by clicking on the Contact Us link below. Updates concerning this action will be posted above.
Residents of Quebec who purchased IMAX shares between February 17 and August 9, 2006 should contact Simon Hébert at (418) 694-2009 or simon.hebert@siskinds.com.