Digital Generation Shareholder Alert: Briscoe Law and Powers Taylor Investigate Possible Breaches of
Digital Generation Shareholder Alert: Briscoe Law and Powers Taylor Investigate Possible Breaches of Fiduciary Duty by Officers and Directors
DALLAS--(BUSINESS WIRE)-- Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that a federal class action lawsuit has been filed against Digital Generation, Inc. ("Digital" or "Company") (NasdaqGS: DGIT). The firms are investigating additional legal claims against the officers and Board of Directors of Digital during the period of June 20, 2011 and February 19, 2013 (the "Class Period").
If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 239-4568, or via email at WBriscoe@TheBriscoeLawFirm.com, or Zachary Groover at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org. There is no cost or fee to you.
In a recently filed federal class action complaint, Digital and certain of its officers and directors were charged with violating certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges that among other things, defendants misrepresented and/or failed to disclose that: (a) the Company's online division was grossly underperforming, and well below the value reported to investors; (b) the Company cloaked its declining revenue base with past acquisitions; (c) in order to bolster its appearance as an attractive acquisition target the Company had vastly overpaid for its acquisition of Media Mind, Inc. and other online segments; (d) the Company was not sufficiently poised for a strategic partnership or buyout; and (e) as a result of the above, the Company's financial statements were materially false and misleading at all applicable times. According to the complaint, when the Company announced it had failed to approve any transaction for buyout or strategic alternative as well as an additional $11.4 million write-down of its recently acquired online segments, the Company's shares plummeted.
Shareholder rights attorney Willie Briscoe said, "Recent revelations about alleged improper business practices and procedures regarding key aspects of Digital's business and other misleading financial statements have prompted the firms to investigate possible breaches of fiduciary duties and other violations of state law by Digital's officers and directors. Based on our investigation, we are prepared to pursue litigation to preserve the company and the value of Digital stock for all shareholders."
The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.
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