Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of
$100,000 Investing In Digital Generation, Inc. To Contact The Firm
NEW YORK, May 6, 2013
NEW YORK, May 6, 2013 /PRNewswire/ --Faruqi & Faruqi, LLP, a leading national
securities law firm, is investigating potential securities fraud at Digital
Generation, Inc. ("Digital Generation" or the "Company") (NASDAQ: DGIT).
(Logo: http://photos.prnewswire.com/prnh/20120119/MM38856LOGO )
The investigation focuses on whether the Company and its executives violated
federal securities laws by failing to disclose that: (1) Digital Generation's
online segment was performing significantly below levels reported to
investors; (2) Digital Generation's declining revenue base was being hidden
behind Company acquisitions; (3) the Company had substantially overpaid for
its acquisition of Media Mind, Inc. ("Media Mind") and other online segments
in order to appear to be an attractive acquisition target; and (4) the Company
was not sufficiently poised for a strategic partnership or buyout.
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 three of the online media assets it had recently acquired: Media Mind,
Eye Wonder, and Peer 39. This impairment represented a staggering 33%
write-down of the initial purchase price of these assets. Digital Generation
also reported that the Company's 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 after exploring numerous options
available to the Company, including a sale of all or parts of the business, a
spin-off and split-off of parts of the business, capital structure
alternatives, or potential merger combinations. In addition, the Company
recorded a further $11.4 million write-down of its recently acquired online
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.
Request more information now by clicking here: www.faruqilaw.com/DGIT.There
is no cost or obligation to you.
If you invested in Digital Generation stock or options between June 20, 2011
and February 19, 2013 and would like to discuss your legal rights, visit
www.faruqilaw.com/DGIT. You can also contact us by calling Richard Gonnello
or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by
sending an e-mail to firstname.lastname@example.org or email@example.com.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Digital
Generation's conduct to contact the firm, including whistleblowers, former
employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is
Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or
predict a similar outcome with respect to any future matter. We welcome the
opportunity to discuss your particular case. All communications will be
treated in a confidential manner.
FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP
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