Pomerantz Law Firm Reminds Shareholders of Digital Domain Media Group, Inc. of
Upcoming Deadline -- DDMGQ
NEW YORK, Nov. 9, 2012 (GLOBE NEWSWIRE) -- Shareholders of Digital Domain
Media Group, Inc. ("DDMGQ" or the "Company") (OTCQB:DDMGQ), are reminded of
the securitiesclass action against certain officers and the managing
underwriters of the Company's Initial Public Offering ("IPO").The class
action (2:12-cv-14344), filed in the United States District Court, Southern
District of Florida, is on behalf of all persons who purchased DDMGQ common
stock between November 18, 2011 and September 6, 2012, inclusive (the "Class
Period") and/or persons who purchased or otherwise acquired DDMGQ common stock
in or traceable to the Company's initial public offering, which commenced on
or about November 18, 2011 (the "IPO"). This class action is brought under
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule
10(b)-5 promulgated thereunder, and Sections 11 and 15 of the Securities Act
If you are a shareholder who purchased DDMGQ common stock during the Class
Period, you have until November 19, 2012 to ask the Court to appoint you as
Lead Plaintiff for the class. To discuss this action, contact Robert S.
Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include their
mailing address and telephone number.
DDMGQ is a digital production company which was founded in 1993. The Company
provides computer-generated animation and digital visual effects for major
motion picture studios and advertisers.
On May 16, 2011, DDMGQ filed the Registration Statement with the SEC for its
initial public offering, and on November 18, 2011 the IPO commenced. The
Company sold 4.92 million shares of its common stock at an IPO price of $8.50
per share. The gross proceeds of the offering totaled $41.8 million.
The Complaint alleges that during the Class Period and in connection with
DDMGQ's IPO, the Company made misleading statements and/or failed to disclose
material facts about the Company's ability to raise capital and fund its
operations. Senior DDMGQ officers falsely reassured shareholders that the
Company would be able to meet its operating expenses, even though the Company
was faced with a substantial "burn rate" which threatened its viability to
continue as a going concern.
According to a September 18, 2012 article in the Palm Beach Post, DDMGQ had a
long history of difficulties meeting its payroll which went back to 2010.
According to the Post, the Company's Chief Executive Officer ("CEO")
"predicted a 'train wreck' in an email to an investor in early
2010."Moreover, the CEO concealed a Loan Agreement for $10 million which he
entered into at the time of the IPO. The loan was secured by the CEO's DDMGQ
common shares and by the CEO's personal properties.
The revelation of the DDMGQ's true financial condition culminated in its
filing for Chapter 11 bankruptcy on September 11, 2012, less than 10 months
after its IPO.
The Pomerantz Firm, with offices in New York, Chicago and San Diego, is
acknowledged as one of the premier firms in the areas of corporate,
securities, and antitrust class litigation. Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the Pomerantz Firm
pioneered the field of securities class actions. Today, more than 75 years
later, the Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of fiduciary duty,
and corporate misconduct. The Firm has recovered numerous multimillion-dollar
damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
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