According to the law firm press release, MDC is a holding company that provides a comprehensive range of customized marketing, activation, communications and consulting services via its subsidiaries.
The complaint alleges that during the Class Period, defendants made or caused to be made a series of materially false or misleading statements about MDC’s business, executive compensation, related-party transactions, goodwill, prospects and operations. These material misstatements and omissions had the cause and effect of creating in the market an unrealistically positive assessment of MDC and its business, prospects and operations, thus causing the Company’s common stock to be overvalued and artificially inflated. As a result, MDC common stock traded at artificially inflated prices and the investing public suffered damages.
On April 27, 2015, after the close of trading, MDC issued a press release announcing its financial results for the period ended March 31, 2015. The press release also reported that the Securities and Exchange Commission had been conducting a formal investigation into the Company’s reporting of executive compensation and goodwill. In response to these revelations, the price of MDC common stock, which traded near the Class Period high of $28.65 per share on the last day of the Class Period, plummeted 27.8%, or $7.78 per share, from $27.98 per share on April 27, 2015 to close at $20.20 per share on April 28, 2015.
Plaintiffs filed an amended complaint on December 15, 2015.
On September 30, 2016, the Court issued an Order granting Defendants' Motion to Dismiss. This case was closed. Plaintiffs filed a Notice of Appeal of this Order on November 2. On February 23, 2017, Plaintiffs voluntarily dismissed the Appeal.