ModusLink Global Solutions, Inc. (NASDAQ:MLNK) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
June 13, 2012 (Shareholders Foundation) -- An investor in NASDAQ:MLNK filed a lawsuit in the U.S. District Court for the District of Massachusetts against ModusLink Global Solutions, Inc. over alleged Violations of Federal Securities Laws in connection with certain financial statements.
According to the complaint the plaintiff alleges on behalf of investors who purchased or otherwise acquired ModusLink Global Solutions, Inc. (NASDAQ:MLNK) common stock during the period from September 26, 2007 through June 8, 2012, ModusLink Global Solutions, Inc and certain of its executive officers violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements regarding the Company's business and prospects.
ModusLink Global Solutions, Inc. reported that its Total Revenue fell from $1billion for the 12months period ending on July 31, 2009 to $876.47million for the 12months period ending on July 31, 2011. However, it also reported that over the same time periods its Net Loss decreased from $193.45million to $49.02million.
Shares of ModusLink Global Solutions, Inc. (NASDAQ:MLNK) rose from as low as $1.75 per share in March ’09 to over $11 per share in March 2010.
For the most part of 2011 NASDAQ:MLNK shares traded between $4 and $6 per share.
Then on June 11, 2012, ModusLink Global Solutions, Inc. announced that it will delay the filing of the third quarter FY 2012 results and that it expects to restate its financial results from FY 2007 through first two quarters of the FY 2012. Furthermore, ModusLink Global Solutions, Inc. said that its President and CEO retired effective immediately upon the appointment of a new chief executive officer and its president, global operations for ModusLink left the company effective immediately
Shares of ModusLink Global Solutions, Inc. (NASDAQ:MLNK) dropped from $4.27 on Friday June 8, 2012 to $2.64 on Monday, June 11, 2012.
On June 13, 2012, NASDAQ:MLNK shares closed at $2.88 per share.


