NEW YORK, June 29, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at ModusLink Global Solutions, Inc. ("ModusLink" or the "Company") (NASDAQ: MLNK).
The investigation focuses on whether ModusLink and its executives violated federal securities laws by failing to disclose that: (1) the Company was improperly accounting for volume discount rebates provided by vendor companies; (2) ModusLink's financial statements between the fall of 2007 and summer of 2012 did not present an accurate presentation of the Company's finances and operations, with Company financial results not being prepared in accordance with the Generally Accepted Accounting Principles; and (3) the Company lacked adequate internal and financial controls.
On June 11, 2012, ModusLink announced that it would need to restate financial results going back to 2007 and that its Audit Committee investigation found that certain client contracts were consistently misaligned with the Company's practice of retaining volume discounts. Additionally, the Company also disclosed that the Securities and Exchange Commission launched an inquiry into these matters, and that ModusLink's President and Chief Executive Officer ("CEO"), Joseph C. Lawler, was immediately resigning from his position as CEO and a member of the Board of Directors. As a result of this news, ModusLink shares plunged 34.74%, to close at $2.78 on June 11, 2012 on unusually heavy volume of more than 1.3 million shares traded.
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If you purchased ModusLink stock or options between September 26, 2007 and June 8, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/MLNK. You can also contact us by calling Juan Monteverde, Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected], [email protected] or [email protected] Faruqi & Faruqi, LLP also encourages anyone with information regarding ModusLinks's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Juan Monteverde, Esq.
Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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