Pixar (NASDAQ:PIXR)
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From May 2019 to May 2024
The law firm of Milberg Weiss Bershad & Schulman LLP
announces that a class action lawsuit was filed today, on behalf of
all persons who purchased or otherwise acquired the securities of
Pixar (or the "Company") (Nasdaq: PIXR), between January 18, 2005 and
June 30, 2005, inclusive (the "Class Period"), seeking to pursue
remedies under the Securities Exchange Act of 1934 (the "Exchange
Act"). A copy of the complaint filed in this action is available from
the Court, or can be viewed on Milberg Weiss's website at:
http://www.milbergweiss.com
If you purchased or otherwise acquired the securities of Pixar
between January 18, 2005 and June 30, 2005, inclusive, and sustained
damages, you may, no later than December 20, 2005, request that the
Court appoint you as lead plaintiff. A lead plaintiff is a
representative party that acts on behalf of other class members in
directing the litigation. In order to be appointed lead plaintiff, the
Court must determine that the class member's claim is typical of the
claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or
more class members may together serve as "lead plaintiff." Your
ability to share in any recovery is not, however, affected by the
decision whether or not to serve as a lead plaintiff. You may retain
Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice,
to serve as your counsel in this action.
The action, Civil Action number C-05-4290JSW, is pending before
the Honorable Jeffrey S. White, in the United States District Court
for the Northern District of California against defendants Pixar,
Steve P. Jobs (Chairman and CEO), Edwin E. Catmull (President), and
Simon T. Bax (CFO and Executive VP). According to the complaint,
defendants 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.
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.
On 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." In
reaction to this news, Pixar shares fell an additional $1.01 per share
to close at below $42.00.
Milberg Weiss Bershad & Schulman LLP (http://www.milbergweiss.com)
is a firm with over 100 lawyers with offices in New York City, Los
Angeles, Boca Raton, Delaware, and Washington D.C. and is active in
major litigations pending in federal and state courts throughout the
United States. Milberg Weiss has taken a leading role in many
important actions on behalf of defrauded investors, consumers, and
others for nearly 40 years. Please contact the Milberg Weiss website
for more information about the firm. If you wish to discuss this
action with us, or have any questions concerning this notice or your
rights and interests with regard to the case, please contact the
following attorneys:
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Steven G. Schulman
Peter E. Seidman
Andrei V. Rado
One Pennsylvania Plaza, 49th fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email: sfeerick@milbergweiss.com
Website: http://www.milbergweiss.com
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