The post with Adobe Engineer Eric Chan's comments on this issue has been deleted due to the PS & LR forum consolidation. Fortunately, I archved his reply as shown below that explains the cause and some suggestions he provided.
MadManChan2000
Aug 9, 2013 9:19 AM (in response to Othmar Atzor)
Sorry for joining this thread late.
https://forums.adobe.com/message/5558392#5558392
Unfortunately this is a limitation of our current color profile process. This limitation actually applies to all of our camera models that we support, not just Panasonic. What is happening is that the color transform we've built is optimized mainly for daylight and incandescent light conditions, but when applied to scenes with bright light sources (especially neon lights, and especially blue/purple lights), the transform will tend to oversaturate and clip those colors.
My team is investigating how to build better profiles going forward, but in the meantime, my main suggestion is to try reducing the Red/Green/Blue Saturation sliders in the Camera Calibration panel (not the HSL tab, and not in the Basic panel). This will help to reduce the oversaturation and clipping, and will give you a better starting point for further edits (Exposure, Contrast, etc.). As a shortcut, you can store your Red/Green/Blue Saturation slider adjustments as a preset that you can then apply quickly to other images you have that show the same issue.
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