Don't count on a surprise bid for Imax Corp. The giant-screen film company, whose auction has stalled, was slapped Tuesday with a shareholder lawsuit. Law firm Chimicles & Tikellis LLP filed a U.S. class-action lawsuit over allegedly "false and misleading" financial statements. A day earlier, the Toronto-based company's CFO quit. The shareholder suit alleges that in the fourth quarter of 2005 the company recognized revenue from screens that were not opened in an attempt to attract a buyout or merger with inflated financial results. The lawsuit was filed at a U.S. District Court in New York by shareholders who purchased or acquired shares between Feb. 17 and Aug. 9. Also named in the suit were certain officers and directors of the company. Earlier in the month, the company announced its auction had not attracted strong interest. While the company remains on the block, odds of a sale are looking unlikely. —Matthew Wurtzel
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