$27.25 million for shareholder class of purchasers of CINAR securities

Client
Shareholder class of purchasers of CINAR securities.

Case Name
In re CINAR Securities Litigation, Master File No. 00 CV 1086 (E.D.N.Y.).

Result
$27.25 million.

Case Details
Acting as lead counsel, Lowey Dannenberg obtained a $27.25 million settlement on behalf of our client and a class of purchasers of securities of CINAR Corporation. CINAR failed to disclose that it inflated financial results by falsely representing that television scripts written by United States citizens were written by Canadian citizens in order to obtain favorable Canadian tax credits for Canadian produced television programs. Following press reports which revealed that CINAR was the subject of a tax investigation by Canadian federal authorities, CINAR falsely characterized any impact from the investigation as not material. Later, after having raised more than $150 million in a public offering, the company revealed that there would be a financial and accounting impact greater than initially anticipated and the price of CINAR stock plummeted fell by 27% on the news.