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Girard Gibbs LLP Files Class Action Lawsuit Against IMAX Corporation.

SAN FRANCISCO -- The law firm of Girard Gibbs LLP (http://www.girardgibbs.com) filed a class action lawsuit on September 5, 2006, on behalf of persons who purchased or otherwise acquired securities of IMAX Corporation (NASDAQ:IMAX) ("IMAX" or the "Company") between February 17, 2006 and August 9, 2006, inclusive (the "Class Period"). The class action alleges that IMAX and certain of its present and former officers violated the Securities Exchange Act of 1934.

If you wish to discuss this action or your rights as an investor in IMAX, please contact Girard Gibbs LLP toll-free at (866) 981-4800. A copy of the complaint is available from the Court, or can be viewed on Girard Gibbs LLP's website at: http://www.girardgibbs.com/imax.html.

The class action, captioned Reynolds v. IMAX Corp., et al., 06-cv-6693, is pending in the United States District Court for the Southern District of New York. The class action is brought against defendants IMAX, Richard L. Gelfond, Bradley J. Wechsler and Francis T. Joyce ("Defendants").

The Complaint alleges that Defendants violated the federal securities laws by issuing a series of material misrepresentations in its filings with the Securities and Exchange Commission ("SEC") and press releases. According to the Complaint, Defendants failed to disclose that: (1) IMAX's financial results including its revenue recognition were materially misrepresented; (2) IMAX lacked adequate internal controls; and (3) IMAX's financial statements were presented in violation of Generally Accepted Accounting Principles. The Complaint alleges that Defendants inflated IMAX's financial results in a failed attempt to attract a buyer or merger partner for the Company.

On August 9, 2006, IMAX announced that it was responding to an informal inquiry from the SEC regarding the Company's revenue recognition. IMAX's share price fell by 40.6% or $3.91 in reaction to this news.

If you purchased or otherwise acquired IMAX securities between February 17, 2006 and August 9, 2006, you may, no later than October 10, 2006, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain Girard Gibbs LLP, or other attorneys, to serve as your counsel in this action.

Girard Gibbs LLP is one of the nation's leading firms representing individual and institutional investors in securities fraud class actions and litigation to correct abusive corporate governance practices, breaches of fiduciary duty and proxy violations. For more information, please access the firm's web site, www.girardgibbs.com. To discuss this class action with us, please contact the following attorney:

Aaron M. Sheanin 601 California Street, 14th Floor San Francisco, CA94108 Phone number: (866) 981-4800 Email: mail@girardgibbs.com Website: http://www.girardgibbs.com/imax.html
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Publication:Business Wire
Geographic Code:1CANA
Date:Sep 5, 2006
Words:503
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