Canadian Producer Sees Stock Plummet
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MONTREAL — Cinar Corp. stock lost two-thirds of its value after the producer of children’s television programs said Monday that $122 million earmarked for acquisitions was improperly invested in corporate bonds.
The producer of such programs as “Wimzie’s House” and the Emmy-winning “Arthur” said Tuesday that about $35 million of the securities is “freely available,” and that the remaining $86 million has been “pledged to secure other investments.” It blamed a former vice president for investing the money without board approval.
Montreal-based Cinar, already the subject of a police inquiry into allegations of tax credit fraud, was named Tuesday in three U.S. securities lawsuits seeking class-action status.
Cinar tumbled $12.63 to close at $5.75 on Nasdaq. Cinar also trades on the Toronto stock market.
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