Case Page

 

Case Status:    SETTLED
On or around 04/11/2017 (Date of order of final judgment)

Filing Date: September 20, 2012

According to the law firm press release, the complaint alleges violations of United States securities laws on behalf of individuals or entities who purchased or otherwise acquired DDMG common stock between November 18, 2011 and September 6, 2012 (the "Class Period"). It also alleges claims on behalf of those who purchased or otherwise acquired DDMG stock in or traceable to the Offering.

The lawsuit alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the United States Securities Exchange Commission (the "SEC"), on behalf of Class Period investors, and under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, on behalf of IPO purchasers.

The lawsuit claims that DDMG, a digital production company that was forced to file for bankruptcy in September 2012, less than 10 months after its IPO, misled investors in documents filed with the SEC as part of the Offering and in other statements made throughout the Class Period.

The lawsuit alleges that, among other things, the defendants misled the public about DDMG's ability to raise capital and fund its operations, falsely reassuring investors about the Company's ability to meet operating expenses while it "burned" cash at a rate that threatened its viability.

In fact, according to a September 18, 2012 article in the Palm Beach Post, DDMG had difficulties meeting payroll as far back as 2010. The truth of the Company's financial situation was revealed in a series of disclosures beginning with an August 1, 2012 press release stating that DDMG would explore "a broad range of strategic and financial alternatives" and culminating with its filing for Chapter 11 bankruptcy protection September 11, 2012. As a result of these disclosures, the value of the Company's stock declined, damaging investors.

On March 12, 2013, the Court issued an Order consolidating cases, appointing lead plaintiff, and approving the selection of lead counsel. A consolidated and amended complaint was filed on July 31.

On September 17, 2013, the Lead Plaintiffs filed a notice voluntarily dismissing this action as to certain individual defendants. Another notice voluntarily dismissing certain defendants was filed on September 30.

On June 17, 2016, the parties filed a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on July 25. On April 11, 2017, the Court granted final approval of the Settlement and dismissed this case with prejudice.

COMPANY INFORMATION:

Sector: Services
Industry: Motion Pictures
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: DDMG
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. Florida
DOCKET #: 12-CV-14333
JUDGE: Hon. Jose E. Martinez
DATE FILED: 09/20/2012
CLASS PERIOD START: 11/18/2011
CLASS PERIOD END: 09/06/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio (Palm Beach Gardens)
    4280 Professional Center Drive, Suite 350, Berman DeValerio (Palm Beach Gardens), FL 33410
    561.835.9400 561.835.9400 ·
No Document Title Filing Date
COURT: S.D. Florida
DOCKET #: 12-CV-14333
JUDGE: Hon. Jose E. Martinez
DATE FILED: 07/31/2013
CLASS PERIOD START: 11/18/2011
CLASS PERIOD END: 09/06/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio (Palm Beach Gardens)
    4280 Professional Center Drive, Suite 350, Berman DeValerio (Palm Beach Gardens), FL 33410
    561.835.9400 561.835.9400 ·
  2. Levi & Korsinsky LLP (DC)
    1101 30th Street, NW; Suite 115, Levi & Korsinsky LLP (DC), DC 20007
    ·
  3. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date