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Following SEC Investigation Shareholders File Lawsuit Against IMAX Corp. - (NASDAQ: IMAX) - KGS Announces Action
Following SEC Investigation Shareholders File Lawsuit Against IMAX Corp. - (NASDAQ: IMAX) - KGS Announces Action

By: Marketwire .
Aug. 13, 2006 06:35 PM

NEW ORLEANS, LA -- (MARKET WIRE) -- 08/13/06 -- Kahn Gauthier Swick, LLC ("KGS") announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of shareholders who purchased, exchanged or otherwise acquired the common stock and other securities of IMAX Corporation ("IMAX'' or the "Company'') (NASDAQ: IMAX) between February 17, 2006 and August 9, 2006.

NO CLASS HAS YET BEEN CERTIFIED IN THIS ACTION AND, UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN AN ATTORNEY.

On August 10, 2006, shares of IMAX Corp. plummeted 41%, the morning after the company issued a series of negative reports to its shareholders. IMAX said in its second-quarter earnings report that it had received an informal inquiry request from the Securities and Exchange Commission regarding revenue-recognition timing. The SEC's inquiry was focused on IMAX's recognition of revenue in the fourth quarter of 2005 in 10 theaters that were not open during that quarter. Further, IMAX said that it had identified a "material weakness" related to revenue-recognition issues in its second-quarter financial report, leading to a reduction of $800,000 in revenue. IMAX also announced that it could not find a merger partner or buyer.

If you would like to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free 1-866-467-1400, ext., 100, or 504-648-1850, or by email at lewis.kahn@kglg.com.

KGS ENCOURAGES INVESTORS TO ACT NOW, AS YOU HAVE ONLY UNTIL OCTOBER 10, 2006, TO MOVE THE COURT TO SERVE AS LEAD PLAINTIFF.

Contact:
Lewis Kahn
KGS
1-866-467-1400, ext. 100
504-648-1850
email: lewis.kahn@kglg.com

Published Aug. 13, 2006
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