SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders With Losses on
Their Investment in Digital Generation, Inc. of Class Action Lawsuit and
Upcoming Deadline -- DGIT
NEW YORK, June 7, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford
Dahlstrom & Gross LLP has filed a class action lawsuit against Digital
Generation, Inc. ("Digital Generation" or the "Company") (Nasdaq:DGIT) and
certain of its officers. The class action, filed in United States District
Court, Northern District of Texas, and docketed under 3:13-cv-1684, is on
behalf of a class consisting of all persons or entities who purchased or
otherwise acquired securities of Digital Generation between June 20, 2011 and
February 19, 2013, both dates inclusive (the "Class Period"). This class
action seeks to recover damages against the Company and certain of its
officers and directors as a result of alleged violations of the federal
securities laws pursuant to Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Digital Generation securities during
the Class Period, you have until July 1, 2013 to ask the Court to appoint you
as Lead Plaintiff for the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. 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,
telephone number, and number of shares purchased.
Digital Generation purports to be the "world's leading ad management and
distribution platform." The Company claims to connect over 12,000 global
advertisers and 5,000 agencies with their targeted audiences through an
expansive network of over 40,000 media destinations across broadcast and
digital in 75 countries, managing approximately ten percent of the world's
The Complaint alleges that throughout the Class Period, defendants made
materially false and misleading statements regarding the Company's business,
financial performance, and prospects.During the Class Period, Digital
Generation touted itself as a Company achieving steady and consistent growth,
and poised for a strategic buyout on the basis of the Company's strong
performance and diversification. In order to cultivate this image, defendants
made a series of false and/or misleading statements regarding its growth and
value of its acquisitions, failing to disclose that: (i) the Company's online
segment was grossly underperforming, and well below the value reported to
investors; (ii) past acquisitions had masked the Company's declining revenue
base; (iii) the Company had vastly overpaid for its acquisition of Media Mind,
Inc. ("Media Mind") and other online segments 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 of the above, the
Company's financial statements were materially false and misleading at all
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 the online media assets it had just recently acquired: Media Mind,
Inc., Eye Wonder and Peer 39. This impairment represented a staggering 33%
write-down of the initial purchase price of these assets. The Company also
reported that its television unit took an impairment charge of over $131
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.In addition, the Company recorded an
additional $11.4 million write-down of its recently acquired online segments.
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.
The Pomerantz Firm, with offices in New York, Chicago, Florida, 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 70 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 class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
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