Pixar Faces 'Incredible' Lawsuit24 Oct, 2005 By: Holly J. Wagner
Three class action law firms dropped investor lawsuits on Pixar today over miscalculating sales for The Incredibles.
The law offices of Charles J. Piven and Brian Felgoise and the firm Schatz & Nobel announced their presence today in claims, on the heels of a Friday filing by the firm Milberg Weiss Bershad and Schullman.
All of the cases make similar allegations, contending that Pixar executives knew or should have known that home entertainment sales of The Incredibles would not be enough to drive promised earnings per share of 15 cents for the second quarter, a figure the company cut to 10 cents per share in a guidance statement June 30. The following day Pixar shares lost more than $7 each in value, dropping from $50.05 per share to $43.01. Shares slipped another $1.01 Aug. 26, when the company announced the Securities and Exchange Commission had begun an investigation as a result of the changed guidance.
It names Pixar chairman and CEO Steve P. Jobs, president Edwin E. Catmull and CFO and EVP Simon T. Bax, and alleges that Bax and Catmull sold hundreds of thousands of personally held shares of Pixar for more than $27.1 million in proceeds, even as the company disappointed outside investors.
The lawsuit, which attorneys hope to have certified as a class action, covers people who bought shares of Pixar between Jan. 18 and June 30 of this year. It is pending before Judge Jeffrey S. White in the United States District Court for the Northern District of California.
Shareholders who bought during the class period have until Dec. 20 to request that they be designated as the lead plaintiff.