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Dreamworks off SEC hookSecurities And Exchanges Commission Drops Probe Against StudioSecurity and Exchanges Commission drops Dreamworks probe, says company
Dreamworks SKG announced Thursday that the Security and Exchanges Commission had dropped its informal inquiry into possible trading violations. In a letter to the company's lawyers, SEC senior assistant regional director Kelly Bowers said thatthe "investigation has been recommended for termination, and no enforcement action has been recommended." Bowers gave no reasons for the decision in his letter. The investigation started when Dreamworks shares fell sharply on March 10, 2005, prior to the company's announcement that disappointing sales of Shrek2 and Shark Tale DVD's had contributed to lower-than-expected profits. The drop started when Newsweek reported that CEO Jeffrey Katzenberg had informed his employees that earnings would fall short of projections, prior to the company's official announcement. Thursday's announcement spurred Dreamworks' stock to rise to $27.80 per share.
The copyright of the article Dreamworks off SEC hook in Hollywood Animated Films is owned by Dominic von Riedemann. Permission to republish Dreamworks off SEC hook in print or online must be granted by the author in writing.
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