COMPANY TOWN ANNEX

Harvey Investors Sue Over Drop in Share Price: Jeffrey Montgomery, chief executive of the Santa Monica-based firm, and three directors are being sued by investors who allege the officials did not respond to short sellers who sparked a 57% drop in Harvey Entertainment Co.’s share price. The suit, filed Friday in Los Angeles County Superior Court, seeks class-action status and alleges that “someone, possibly with the knowledge of some key insiders, deliberately depressed the price of the company’s stock in the hopes of acquiring the company for less than its true value.” Harvey owns the rights to Casper the Friendly Ghost, the subject of a summer hit movie, and other comics characters. Harvey Chief Financial Officer Gregory Yulish said the investors’ allegations are “without merit” and attributed the stock fall partly to an unfavorable newspaper story about the company. Separately, Harvey Entertainment said it is not currently in negotiations regarding a sale of the company to MCA Inc.