Iwerks Shareholder Suit Alleges Securities Violations

Iwerks Entertainment Inc., a Burbank-based producer of specialty theaters and simulation rides, said a class-action lawsuit alleging violations of federal securities laws has been filed against the company in U.S. District Court for the Central District of California.

Iwerks said the complaint was brought by an investor who owns 100 shares of the company’s common stock. The compensation sought by the shareholder was not specified in the suit, said G. Edward Smith, Iwerks’ executive vice president, who declined to comment on specific allegations in the suit.

Iwerks was a Wall Street darling when it went public at $18 a share in October, 1993. The company’s stock hit a high of $37 a few weeks later. But recent setbacks have caused Iwerks’ shares to tumble to as low as $4.