Digital Generation Inc (NASDAQ: DGIT) Investor Securities Class Action Lawsuit 05/02/2013

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Company Name(s): 
Digital Generation
Case Name: 
Digital Generation Shareholder Class Action Lawsuit 05/02/2013
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: DGIT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/02/2013
Class Period Begin: 
06/20/2011
Class Period End: 
02/19/2013
Court of Filing: 
U.S. District Court for the Northern District of Texas
Deadline To File for Lead: 
07/01/2013
Summary: 

December 6, 2013 - Parties filed a stipulation of voluntary dismissal.

September 19, 2013 - The lead plaintiff and lead counsel were appointed.

July 1, 2013 - Lead plaintiff motions were filed.

May 2, 2013 - An investor in shares of Digital Generation Inc (NASDAQ: DGIT) filed a lawsuit in the U.S. District Court for the Northern District of Texas against Digital Generation Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between June 20, 2011 and February 19, 2013.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Digital Generation Inc (NASDAQ: DGIT) between June 20, 2011 and February 19, 2013, that Digital Generation Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements regarding the company's business, financial performance, and prospects.

Digital Generation Inc reported that its annual Total Revenue rose from $241.33 million in 2010 to $324.26 million in 2011. However, its respective Net Income declined from $41.57 million in 2010 to $24.48 million.

On November 8, 2012, Digital Generation Inc 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.

On Feb. 19, 2013, Digital Generation Inc announced the results of the review of its strategic alternatives by a Special Committee of its Board of Directors. Digital Generation Inc said that since August 2012, the Special Committee has explored numerous strategic alternatives available to Digital Generation Inc, including a sale of all or parts of the business, a spin-off and split-off of parts of the business, capital structure alternatives, and potential merger combinations.

Digital Generation Inc said that none of the parties contacted by the Special Committee presented a definitive transaction for final approval by the Special Committee.

Digital Generation Inc (NASDAQ: DGIT) shares declined from over $12 in September 2012 to as low as $5.86 per share.

On May 2, 2013, Digital Generation Inc (NASDAQ: DGIT) shares closed at $6.44 per share, which is less than its current 52 week High of $13.20 per share.