Unsettled
The leave and certification proceedings in Silver v. IMAX Corp. attempt to articulate amendments to Ontario's Securities Act. By Kelly Harris
Law O
n Aug. 9, 2006, IMAX Corp. announced it was respond- ing to an informal inquiry of the U.S. Securities and
Exchange Commission. The follow- ing day, the company's stocks, traded on both the Nasdaq exchange in the United States and the Toronto Stock Exchange in Canada, dropped 40 per cent. In 2007, IMAX restated its finan- cial position for the previous years acknowledging it had erred by rec- ognizing revenue for theatre systems
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not completely installed. According to court documents, the company also acknowledged it had not adhered to generally accepted accounting princi- ples by prematurely recording theatre system revenues in 2005. Lawsuits were brought against the
company, including one by Ontario- based shareholders Cliff Cohen and Marvin Neil Silver. The pair allege mis- representation because the 2005 finan- cial results as reported were not accord- ing to GAAP, therefore the actual value
