Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Digital Generation, Inc.
WAYNE, Pa., May 9, 2013 /PRNewswire/ -- Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/nasdaq:dgit) announces that class action has been filed in the United States District Court for the Northern District of Texas on behalf of purchasers of Digital Generation, Inc. ("Digital Generation" or the "Company") (NASDAQ: DGIT) common stock during the period between June 20, 2011 and February 19, 2013, inclusive (the "Class Period").
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/nasdaq:dgit.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business, financial performance, and prospects. During the Class Period, Digital Generation touted itself as a Company achieving steady and consistent growth, and poised for a strategic buyout on the basis of the Company's strong performance and diversification. In order to cultivate this image, defendants made a series of false and/or misleading statements regarding its growth and value of its acquisitions, failing to disclose that: (1) the Company's online segment was grossly underperforming, and well below the value reported to investors; (2) past acquisitions had masked the Company's declining revenue base; (3) the Company had vastly overpaid for its acquisition of Media Mind, Inc. ("Media Mind") and other online segments in order to appear to be an attractive acquisition target; (4) the Company was not sufficiently poised for a strategic partnership or buyout; and (5) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On November 8, 2012, the Company reported that for the quarter ending September 30, 2012, an impairment charge of over $208 million was taken against the online media assets it had just recently acquired: Media Mind, Inc., Eye Wonder and Peer 39. This impairment represented a staggering 33% write-down of the initial purchase price of these assets. The Company also reported that its television unit took an impairment charge of over $131 million.
On February 19, 2013, the Company issued a press release announcing that a Special Committee of the Company's Board of Directors had failed to approve any transaction or strategic alternative. In addition, the Company recorded an additional $11.4 million write-down of its recently acquired online segments.
On this news, the Company's shares declined $2.53 per share or over 28% to close on February 19, 2013 at $6.45 per share.
If you are a member of the class, you may, no later than July 1, 2013, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/nasdaq:dgit or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at email@example.com. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
SOURCE Ryan & Maniskas, LLP
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