FAQs1. Why did I get this notice package?
Notice packages were sent out to the following :
- People who had registered with Sutts, Strosberg LLP or Siskinds LLP;
- People whose broker identified them as having held shares of IMAX Corporation during the Class Period; and
- People who were identified by IMAX Corporation as having held shares of IMAX.
If you did not hold shares of IMAX during the Class Period, you can disregard the Notice.
The class action concerns IMAX's revenue-recognition practices in 2005. In early 2006, IMAX announced it had successfully completed 14 theatre system installations in the fourth quarter of 2005. IMAX also announced an earnings increase of 62% for the fiscal year ended on December 31, 2005. On August 9, 2006, IMAX stated that it had recognized revenue in the fourth quarter of 2005 on 10 theatre-system installations in theatres which did not open in that quarter. The plaintiffs allege that IMAX and some of its directors and officers knowingly overstated IMAX revenues for 2005 thereby artificially inflating the trading price of IMAX securities; the value of IMAX's securities declined by approximately 40% when the misrepresentation was disclosed.
The Class has been defined by the Court as follows:
All persons and entities, other than Excluded Persons, who acquired Securities during the Class Period on the Toronto Stock Exchange and the NASDAQ, and held some or all of those securities at the close of trading on August 9, 2006.
Yes, you are excluded if you are any of the following: IMAX’s subsidiaries, affiliates, officers, directors senior employees, legal representatives, heirs, predecessors, successors and assigns, and any member of the Individual Defendants’ families and any entity in which any of them has or had during the Class Period a legal de facto controlling interest, and all NASDAQ purchasers during the Class Period who did not deliver an opt-out notice in the U.S. class action In re IMAX Securities Litigation, Civil Action No. 1:06-cv-06128 (S.D.N.Y.).
You are also excluded if you submitted an opt-out form by June 30, 2012.
The settlement provides for the payment of CDN$3.75 million (the “Settlement Amount”). In return, the Defendants will receive a release and a dismissal of the class action. Under the terms of the settlement, liability has never been admitted and is expressly denied by the Defendants.
Class Counsel Fees, Disbursement, Taxes and Administration Expenses, which have been approved by the Court, will be taken from the CDN$3.75 million prior to distribution to the Authorized Claimants.
If you are entitled to a payment under the Settlement Agreement, your share of the net Settlement Amount will depend on the following factors:
- How many Class Members sent in valid Claim Forms;
- The total recognized losses of all of those valid Claim Forms; and
- How many IMAX shares you acquired, when you acquired them, how much you paid, when you sold them and the price at which you sold them.
The Plan of Allocation (found under the Documents tab), provides the formulae the Court has approved for calculating payments.
To be eligible for settlement benefits, Settlement Class Members must file a properly completed claim not later than May 31, 2016.
There is no way to say for sure when distribution will be made because it depends on a number of factors; however, generally, distribution is made within 12 months of the Claims Deadline, barring any unforeseen circumstances.
The law firms of Sutts, Strosberg LLP and Siskinds LLP are acting as Class Counsel in this case. Questions for Class Counsel should be directed by mail, email or telephone to:
Sutts, Strosberg LLP
600-251 Goyeau Street
Windsor, ON N9A 6V4
Michael G. Robb
680 Waterloo Street, P.O. Box 2520
London, ON N6A 3V8
Tel: 1-800-461-6166 x 2380
(within North America)
Tel: 519-672-2251 x 2380
(outside North America)