Pixar in SEC Investigation mess

Pixar in SEC Investigation mess

The Computer Animated Movies Studio Pixar is in sort of troubles with the reports confirmed that Securities and Exchange Commission is probing the company with the case of ‘The Incredibles’ DVD sales. The news resulted in the shares of the company falling down by as much as 5.7 percent after the Wall Street Journal confirmed the news in the media.

The regulators are asking for information related to the slower-than-expected sales of the DVDs, which resulted in company cutting its second- quarter profit forecast in June. This just might be the extension of the probe the regulatory authorities are doing with DreamWorks Animation SKG Inc. Pixar is claiming that the life of DVDs on the stores is much lower than earlier times with people losing interest in the movies as more similar products comes out in the market.

Pixar shares fell as much as $2.44 to $40.56 in the early morning trading. Before the recent spat of falling sales, Pixar was one of the stars of the movie industry, which gained as much as 14 percent in the past year alone in the share market. The company has not responded to the enquiries from the press about their opinions. Just a statement was released confirming that they were indeed under the investigation process.