Case Page

 

Case Status:    DISMISSED    
On or around 12/06/2013 (Stipulation and order of dismissal (voluntary dismissal))

Filing Date: May 02, 2013

According to the law firm press release, Digital Generation purports to be the "world's leading ad management and distribution platform." The Company claims to connect over 12,000 global advertisers and 5,000 agencies with their targeted audiences through an expansive network of over 40,000 media destinations across broadcast and digital in 75 countries, managing approximately ten percent of the world's media assets.

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: (i) the Company's online segment was grossly underperforming, and well below the value reported to investors; (ii) past
acquisitions had masked the Company's declining revenue base; (iii) 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; (iv) the Company was not sufficiently poised for a strategic partnership or buyout; and (v) 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.

On September 19, 2013, the Court granted the plaintiff’s motion for appointment as lead plaintiff and Bernstein Liebhard LLP was appointed as lead counsel.

COMPANY INFORMATION:

Sector: Services
Industry: Business Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: DGIT
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: N.D. Texas
DOCKET #: 13-CV-01684
JUDGE: Hon. David C Godbey
DATE FILED: 05/02/2013
CLASS PERIOD START: 06/20/2011
CLASS PERIOD END: 02/19/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Watkins, Nichols, Sorrels, Agosto & Friend
    800 Commerce Street, Abraham, Watkins, Nichols, Sorrels, Agosto & Friend, TX 77002
    713-222-7211 713-225-0827 ·
  2. Bronstein, Gewirtz & Grossman, LLC (New York)
    60 East 42nd Street - Suite 4600, Bronstein, Gewirtz & Grossman, LLC (New York), NY 10165
    212.697.6484 212.697.7296 · info@bgandg.com
  3. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
No Document Title Filing Date