On January 26, 2012, the parties to the United States securities class action known as In re IMAX Securities Litigation, Civil Action No. 1:06-cv-06128 (the “U.S. Action”) entered into a Stipulation and Agreement of Settlement (the “Proposed Settlement”). The Proposed Settlement consists of twelve million dollars ($12,000,000) in cash and resolves class members’ claims, against defendants IMAX Corporation, Richard L. Gelfond, Bradley J. Wechsler, Francis T. Joyce, Kathryn A. Gamble and PricewaterhouseCoopers LLP (the “Settling Defendants”).
Abbey Spanier, LLP on behalf of lead plaintiff, The Merger Fund, has asked the U.S. Court in charge of this case to preliminarily approve the Proposed Settlement with all Settling Defendants in this U.S. Action brought on behalf of a class consisting of all persons and entities who purchased or otherwise acquired IMAX shares on the NASDAQ from February 27, 2003 through July 20, 2007 (the "Class Period"), inclusive, excluding the Settling Defendants in this action as well as the parallel action pending in Ontario Superior Court of Justice in Canada, and members of those Defendants’ immediate families, all individuals who are either current officers and/or directors of any Defendant, or who served as officers or directors of any Defendant at any time during the Class Period.
The U.S. Court in charge of this case still has to decide whether to preliminarily approve the Proposed Settlement. If finally approved, the Proposed Settlement will resolve all claims asserted in this litigation.