Wolf Popper LLP Files Securities Fraud Class Action Against JAKKS Pacific, Inc.
NEW YORK, Nov. 11 /PRNewswire/ -- Wolf Popper LLP has filed a securities fraud lawsuit against JAKKS Pacific, Inc. ("JAKKS") (Nasdaq: JAKK) and certain of its officers and directors on behalf of all persons who purchased JAKKS securities on the open market from February 16, 2000, through October 18, 2004 (the "Class Period"). The action was filed in the United States District Court for the Southern District of New York (Civ. No. 04CV8910). The complaint can be viewed on Wolf Popper's website or obtained from the Court.
The complaint alleges that during the Class Period, defendants misrepresented JAKKS's financial results and prospects to public investors by improperly acquiring toy and videogame licenses with World Wrestling Entertainment, Inc. ("WWE") by paying illegal kickbacks to WWE employees in return for obtaining said licenses, resulting in JAKKS reporting materially inflated financial results to the public.
On October 19, 2004, JAKKS issued a press release announcing "that it is engaged in discussions with WWE concerning the restructuring of its toy license. . . . The discussions are an outgrowth of certain litigation that has been pending between WWE and a former licensing consultant to WWE and a former employee of WWE. . . . WWE has raised questions about the validity of the licenses as a result of certain transactions between [JAKKS] and that licensing consultant that occurred more than six years ago."
The foregoing disclosure caused JAKKS's stock price to decline upon heavy trading volume from its close of $24.15 per share on October 18, 2004, to its close of $18.81 per share on October 19, 2004, the next trading day -- dropping $5.34, for a 22.11% decline, causing significant aggregate damage to the investing public.
Also on October 19, 2004, WWE filed a law suit against JAKKS alleging that it bribed a WWE executive to obtain the right to produce video games for the WWE.
The stock price again declined from its close of $18.81 per share on October 19, 2004, to its close of $12.91 per share the next trading day -- dropping $5.90, for a 31.37% decline, again, causing significant aggregate damage to the investing public.
Wolf Popper LLP has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders.
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