Moduslink Global Solutions, Inc. Summary: According to the law firm press release, ModusLink provides supply chain management services and solutions. On June 11, 2012, the Company announced that it would need to restate financial results going back to 2007 and that its Audit Committee investigation found that certain client contracts were consistently misaligned with the Company's practice of retaining volume discounts. Additionally, the Committee found instances where vendor costs incurred were marked up to clients inconsistent with contracts.
Concurrently with these announcements, the Company also disclosed that the Securities and Exchange Commission had launched an inquiry into these matters, and that ModusLink’s President and Chief Executive Officer was immediately resigning from his positions with ModusLink and the Company’s Board of Directors. In addition, the Company also announced the immediate departure of the President of Global Operations for ModusLink.
In reaction to the Company’s announcements, ModusLink’s stock price plunged 34.74% to close at $2.78 on June 11, 2012.
On November 13, 2012, the Court issued an Order consolidating related actions, appointing lead plaintiffs, and approving the selection of lead counsel. On February 11, 2013, lead plaintiffs filed an amended complaint.
SIC Code: 7389
Industry: Computer Services
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