Shareholder Suit Against DreamWorks Is Rejected
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DreamWorks Animation SKG Inc. won the dismissal of a class-action lawsuit brought by shareholders after lower-than-expected “Shrek 2” home video sales caused the stock to slide.
U.S. District Judge Mariana Pfaelzer granted DreamWorks’ request to dismiss the consolidated class-action complaint. Plaintiffs can amend the suit with respect to some of the allegations, but cannot refile claims that DreamWorks misled investors in the prospectus for its 2004 initial public offering.
DreamWorks shares fell as much as 13% on May 11 after first-quarter profit missed analysts’ estimates because of the “Shrek 2” video sales.
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