Digital Generation, Inc. Sued by Investor
SAN DIEGO and IRVING, Texas, July 1, 2013
SAN DIEGOand IRVING, Texas, July 1, 2013 /PRNewswire/ --Shareholder rights
attorneys at Robbins Arroyo LLP remind investors of the July 1, 2013 deadline
to file for lead plaintiff in the class action lawsuit filed on behalf of
purchasers of Digital Generation, Inc. (NASDAQ: DGIT) between June 20, 2011
and February 19, 2013 (the "Class Period"), in the U.S. District Court for the
Northern District of Texas. The class action seeks to recover damages against
Digital Generation and certain of its officers and directors for alleged
violations of the Securities Exchange Act of 1943.
The complaint alleges that during the Class Period, Digital Generation failed
to disclose that: (i) the company's online segment performance was
significantly below the value reported to investors; (ii) prior acquisitions
had disguised the company's declining revenue base; (iii) in order to appear
to be an attractive acquisition target, the company had vastly overpaid for
its acquisition of online segments, including Media Mind, Inc. ("Media Mind");
(iv) the company was not adequately 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.
On November 8, 2012, Digital Generation announced that for the quarter ending
September 30, 2012, the company would take impairment charges of: (i) over
$208 million against recently acquired online media assets, including Media
Mind, representing a 33% write down of the purchase price and; (ii) $131
million for its television unit.
Shortly thereafter, on February 19, 2013, Digital Generation announced: (i) an
additional write down of online segments of $11.4 million; and (ii) that a
Special Committee of the board of directors had failed to attract a buyout
partner or strategic alternative. On this news, Digital Generation's stock
price dropped more than 28%, or $2.53 per share, to close at $6.45 per share
on February 19, 2013.
To discuss your shareholder rights, please contact attorney Darnell R. Donahue
at (800) 350-6003, firstname.lastname@example.org, 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:
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free at (800) 350-6003
SOURCE Robbins Arroyo LLP
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