NEW YORK, July 31, 2015 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/mdc/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Southern District of New York on behalf of purchasers of MDC Partners, Inc. ("MDC" or the "Company") (NASDAQ : MDCA ) common stock during the period between September 24, 2013 and April 27, 2015 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/mdc/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges MDC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MDC is a holding company that provides a comprehensive range of customized marketing, activation, communications and consulting services via its subsidiaries.
The complaint alleges that during the Class Period, defendants made or caused to be made a series of materially false or misleading statements about MDC's business, executive compensation, related-party transactions, goodwill, prospects and operations. These material misstatements and omissions had the cause and effect of creating in the market an unrealistically positive assessment of MDC and its business, prospects and operations, thus causing the Company's common stock to be overvalued and artificially inflated. As a result, MDC common stock traded at artificially inflated prices and the investing public suffered damages.
On April 27, 2015, after the close of trading, MDC issued a press release announcing its financial results for the period ended March 31, 2015. The press release also reported that the Securities and Exchange Commission had been conducting a formal investigation into the Company's reporting of executive compensation and goodwill. In response to these revelations, the price of MDC common stock, which traded near the Class Period high of $28.65 per share on the last day of the Class Period, plummeted 27.8%, or $7.78 per share, from $27.98 per share on April 27, 2015 to close at $20.20 per share on April 28, 2015.
Plaintiff seeks to recover damages on behalf of all purchasers of MDC common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com/cases/mdc/ for more information.
SOURCE Robbins Geller Rudman & Dowd LLP