DG FastChannel, Inc. Under Investor Investigation
An investigation on behalf of investors of DG FastChannel Inc. (NASDAQ:DGIT) over possible violations of Federal Securities Laws by DG FastChannel in connection with its stock price drop of more than 40% was announced.
DG FastChannel, Inc, located in Irving, Texas, is a provider of digital technology services, which enables the electronic delivery of advertisements, syndicated programs, and video news releases to broadcasters, online publishers and other media outlets. Shares of DG FastChannel Inc. (NASDAQ: DGIT) dropped from $27.52 per share on Friday Aug 27, 2010, to $15.21 per share on Monday, August 30, 2010, after DG FastChannel announced weaker-than-expected revenue for the 2010 third quarter. The investigation by a law firm concerns whether prior statements of the Company did not properly disclose on-going business risks with respect to customers, integration of acquired businesses and weakening financial results.
DG FastChannel Inc. reported over the past four years increasing revenue. DG Fast Channel reported in 2006 $68.67million, in 2007 $97.69million, in 2008 $157.08million, and in 2009 $190.89million. Shares of DG FastChannel Inc. (NASDAQ: DGIT) traded recently at $15.80 per share, down from its current 52weekHigh of $44.19 per share.


