Digital Generation, Inc. Sued by Investor

                  Digital Generation, Inc. Sued by Investor

PR Newswire

SAN DIEGO, Calif. and IRVING, Texas, May 13, 2013

SAN DIEGO, Calif. and IRVING, Texas, May 13, 2013 /PRNewswire/ --Shareholder
rights attorneys at Robbins Arroyo LLP announce that a purchaser of Digital
Generation, Inc. (NASDAQ: DGIT) securities has filed a complaint in the U.S.
District Court for the Northern District of Texas. The complaint alleges that
Digital Generation and certain of its officers and directors violated the
Securities Exchange Act of 1934 between June 20, 2011 and February 19, 2013
(the "Class Period").

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Digital Generation Is Accused of Making False and Misleading Statements to
Induce a Strategic Buyout

The complaint alleges that during the Class Period, Digital Generation and
certain of its officers and directors issued a series of materially false and
misleading statements concerning the true nature of the company's operations,
financial performance, and prospects. Specifically, the complaint alleges
that certain officers and directors promoted the company as a strong candidate
for a strategic buyout based on the company's strong performance and
diversification. According to the complaint, company officials cultivated
this image through a series of false and/or misleading statements regarding
its growth and the value of several acquisitions made during the Class
Period. Those statements were false and misleading because they failed to
disclose that: (i) the company's online segment performance was well below the
value reported to investors; (ii) prior acquisitions had masked the company's
declining revenue base; (iii) the company had vastly overpaid for its
acquisition of online segments, including Media Mind, Inc. ("Media Mind"), in
order to appear to be an attractive acquisition target; (iv) the company was
not sufficiently poised for a strategic partnership or buyout; and (v) as a
result, the company's financial statements were materially false and
misleading during the Class Period.

Digital Generation Stock Price Falls Dramatically

On November 8, 2012, Digital Generation announced that for the quarter ending
September 30, 2012, the company would take an impairment charge of over $208
million against recently acquired online media assets, including Media Mind,
and a $131 million impairment charge in its television unit. The $208 million
impairment charge represented a 33% write-down of the purchase price of those
assets.

On February 19, 2013, the complaint alleges, Digital Generation announced an
additional write-down of online segments of $11.4 million. In addition, the
company announced that a Special Committee of the board of directors had
failed to attract a buyout partner or strategic alternative. As a result of
this news, Digital Generation's stock price dropped more than 28%, or $2.53
per share, to close at $6.45 per share.

If you purchased or otherwise acquired Digital Generation stock during the
Class Period and wish to serve as lead plaintiff, you must act no later than
July 1, 2013. To discuss your shareholder rights, please contact attorney
Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. For more information, please
go to http://www.robbinsarroyo.com.

Press release link:
http://www.robbinsarroyo.com/shareholders-rights-blog/digital-generation-inc/

Attorney Advertising.Past results do not guarantee a similar outcome.

Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free at (800) 350-6003
http://www.robbinsarroyo.com

SOURCE Robbins Arroyo LLP

Website: http://www.robbinsarroyo.com
 
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