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
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.
Request more information now by clicking here:
www.faruqilaw.com/DGIT. There is no cost or obligation
to you.
Take Action
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 rgonnello@faruqilaw.com or
fmcconville@faruqilaw.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.
rgonnello@faruqilaw.com
Francis McConville, Esq.
fmcconville@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP
