WAYNE, Pa., May 9, 2013 /PRNewswire/ -- Ryan &
Maniskas, LLP (www.rmclasslaw.com/cases/nasdaq:dgit) announces that
class action has been filed in the United States District Court for
the Northern District of Texas on
behalf of purchasers of Digital Generation, Inc. ("Digital
Generation" or the "Company") (NASDAQ: DGIT) common stock during
the period between June 20, 2011 and
February 19, 2013, inclusive (the
"Class Period").
(Logo: http://photos.prnewswire.com/prnh/20121112/MM11729LOGO
)
For more information regarding this class action suit, please
contact Ryan & Maniskas, LLP (Richard
A. Maniskas, Esquire) toll-free at (877) 316-3218 or by
email at rmaniskas@rmclasslaw.com or visit:
www.rmclasslaw.com/cases/nasdaq:dgit.
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: (1) the Company's online segment was grossly
underperforming, and well below the value reported to investors;
(2) past acquisitions had masked the Company's declining revenue
base; (3) 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; (4) the Company
was not sufficiently poised for a strategic partnership or buyout;
and (5) as a result of the above, the Company's financial
statements were materially false and misleading at all relevant
times.
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
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. 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.
If you are a member of the class, you may, no later than
July 1, 2013, request that the Court
appoint you as lead plaintiff of the class. A lead plaintiff
is a representative party that acts on behalf of other class
members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member's
claim is typical of the claims of other class members, and that the
class member will adequately represent the class. Under
certain circumstances, one or more class members may together serve
as "lead plaintiff." Your ability to share in any recovery is
not, however, affected by the decision whether or not to serve as a
lead plaintiff. You may retain Ryan & Maniskas, LLP or
other counsel of your choice, to serve as your counsel in this
action.
For more information about the case or to participate online,
please visit: www.rmclasslaw.com/cases/nasdaq:dgit or contact
Richard A. Maniskas, Esquire
toll-free at (877) 316-3218, or by e-mail at
rmaniskas@rmclasslaw.com. For more information about class
action cases in general or to learn more about Ryan & Maniskas,
LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation
firm. Ryan & Maniskas, LLP is devoted to protecting the
interests of individual and institutional investors in shareholder
actions in state and federal courts nationwide.
CONTACT:
Ryan & Maniskas, LLP
Richard
A. Maniskas, Esquire
995 Old Eagle School Rd.,
Suite 311
Wayne, PA
19087
484-588-5516
877-316-3218
www.rmclasslaw.com/cases/nasdaq:dgit
rmaniskas@rmclasslaw.com
SOURCE Ryan & Maniskas, LLP
