Abbey Gardy, LLP Commences Class Action Securities Fraud Suit Against DreamWorks Animation SKG, Inc.

Abbey Gardy, LLP Commences Class Action Securities Fraud Suit Against DreamWorks Animation SKG, Inc.

NEW YORK, June 2 /PRNewswire/ -- Abbey Gardy, LLP commenced a Class Action lawsuit on behalf of all purchasers of securities of DreamWorks Animations SKG, Inc. ("DreamWorks" or the "Company") (NYSE:DWA) between October 27, 2004 and May 10, 2005, inclusive (the "Class Period").

The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of DreamWorks securities. The action captioned Pfeffer v. DreamWorks Animation SKG, Inc., et al., is pending in the United States District Court for the Central of California against defendants DreamWorks, Jeffery Katzerberg (Chief Executive Officer) and Roger Enrico (Chairman of the Board). A copy of the complaint filed in this action is available from the Court, or can be viewed http://www.abbeygardy.com/.

The Complaint alleges that starting on October 27, 2004 and continuing until May 10, 2005, defendants made a series of materially false and misleading statements regarding the about Dreamworks business and earnings. During the Class Period the Company filed its Form 10-K for its year ended December 31, 2004. In addition, the Company issued press releases on November 8, 2004, March 17, 2005 and May 10, 2005. The Complaint alleges that throughout the Class Period, defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: a) that sales of Shrek2 DVD's were declining; (b) retailers were returning to the Company massive amounts of unsold Shrek 2 DVD inventory; (c) the Company was shipping products far in excess of the actual demand for those products; and (e) as a result of the foregoing, defendants' opinions and statements concerning the Company's current and future earnings lacked a reasonable basis at all times.

On May 10, 2005, Dreamworks announced that Shrek 2 did not meet the company's retail sales expectations for the first quarter. The Company reported for the first time that the "sales shortfall resulted in a higher level of returns than expected. As a result, DWA recorded no revenue from Shrek 2 in the quarter other than from licensing and merchandising." On this news the price of DreamWorks stock dropped from $36.50 to close at $32.05.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired DreamWorks securities during the Class Period. If you purchased or otherwise acquired DreamWorks securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased DreamWorks securities during the Class Period, you may, no later than August 1, 2005 request that the Court appoint you as lead plaintiff.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.

Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:

Susan Lee or Nancy Kaboolian, Esq. Abbey Gardy, LLP 212 East 39th Street New York, New York 10016 (212) 889-3700 (800) 889-3701 (Toll Free) Or e-mail Susan Lee at slee@abbeygardy.com

Source: Abbey Gardy, LLP

CONTACT: Susan Lee, slee@abbeygardy.com or Nancy Kaboolian, Esq., both of Abbey Gardy, LLP, +1-212-889-3700, or 800-889-3701, Toll Free

Web site: http://www.abbeygardy.com/

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