DreamWorks Animation has been hit with a shareholder lawsuit alleging the company misled investors about the poor performance of its 2013 movie "Turbo."
Charles Paddock, a DreamWorks shareholder suing on behalf of himself and other investors, alleges DreamWorks Animation failed to disclose the poor results of the film in a timely fashion, according to a complaint recently filed in the U.S. District Court in Los Angeles.
"As a result of the defendants' wrong acts and omissions, and the precipitous decline in the market value of the company's securities, plaintiff and other class members have suffered significant losses and damages," the lawsuit states.
The Paddock complaint, which seeks class-action status, also names DreamWorks Animation Chief Executive Jeffrey Katzenberg and Chief Financial Officer Lewis Coleman.
A spokeswoman for DreamWorks declined to comment.
The lawsuit, filed by the L.A. law firm of Glancy Binkow & Goldberg, is one of several shareholder actions recently filed against the Glendale-based studio.
The cases center on the timing of a $13.5-million write-down the company announced in February for "Turbo," the snail comedy that opened in the summer of 2013.
The write-down was the latest box-office misfire for DreamWorks in the last two years. The studio also took an $87-million write-down for "Rise of the Guardians" and a $57-million write-down for "Mr. Peabody & Sherman."
DreamWorks said last month that the Securities and Exchange Commission was investigating the "Turbo" write-down. Shares fell 12% following the announcement.
DreamWorks shares closed Monday at $20.09, down about 1%. Shares have dropped 40% in the last six months.
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