Update: Dreamworks Animation has contacted us and says the Fox News story is false, and that the three female executives mentioned in that story are not at the center of the informal SEC probe into trading of DWA stock and release of its first quarter results. Dreamworks Animation will be sending an official statement to Cinematical on this matter shortly.

Shrek 2Dreamworks Animation has been through the wringer, what with DVD sales lower than anticipated, posting a profits warning, cancelling a planned secondary stock offering, and then admitting it is the target of an investigation by the Securities and Exchange Commission. Now, in a notice filed with the SEC, the company notes that it has altered the employment agreements for two top execs, Katherine Kendrick and Katrina Leslie, who will no longer report to a third exec, Ann Daly. All three women are thought to be at the center of the SEC investigation.

You know, really - you would think after seeing the example of Martha Stewart being sent to prison, and forced to wear a not-so-fashionable ankle bracelet after her release, execs everywhere would be on high alert not to do anything blatantly stupid. Fox News reported recently that, two weeks before DWA announced the less-than-stellar sales of the Shrek 2 DVD, which sent stock plummeting, the three women sold off nearly $5 million in company stock. If that story is true, these have to be three of the stupidest execs in the history of the film biz. How could they not think that someone would notice that?

categories Cinematical