Company Town

Exhibitors: Showscan Entertainment Inc. has sued Imax Corp., claiming it violated federal antitrust law. The suit, filed in U.S. District Court in Los Angeles, seeks unspecified damages and a court order that would prohibit Imax from filing “sham” lawsuits against Showscan and telling Showscan’s customers that the company’s products are unreliable. Both companies build large-screen specialty theaters for theme parks and other tourist attractions. Culver City-based Showscan was sued in February by Imax after Showscan introduced a giant movie screen that competes directly with Imax’s movie theater system products. Showscan’s suit calls Imax’s suit a sham to divert Showscan’s resources. Toronto-based Imax said Showscan’s claims are without merit. Another specialty theater company, Burbank-based Iwerks Entertainment Inc., sued Imax late last month, alleging antitrust law violation.