MDC Partners, Inc. investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, 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, the 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. Specifically, the complaint alleges that the defendants misrepresented or failed to disclose: (a) the company’s executive compensation related disclosures in its filings made, with the SEC materially understated the company’s executive compensation; (b) the related party disclosures in the company’s financial statements failed to disclose certain related party transactions; (c) the company’s reported goodwill was materially overstated; (d) the company’s Forms 10-K and 10-Q failed to disclose then known risks and events or uncertainties in accordance with the requirements of Item 303 of Regulation S-K; (e) the company’s financial statements were presented in violation of GAAP and were materially false and misleading; (f) the company’s disclosure controls and internal controls over its financial reporting were materially deficient; (g) the certifications issued by defendants Nadal and Doft associated with MDC’s disclosure controls and internal controls over MDC’s financial reporting were materially false and misleading; and (h) based on the foregoing, the defendants lacked a reasonable basis for their positive statements about the company, its business prospects and future operating performance.
According to the complaint, after the close of trading, MDC issued a press release on April 27, 2015 announcing that, among other things, the SEC had been conducting a formal investigation into the company’s reporting of executive compensation and goodwill and that MDC formed a Special Committee of independent directors to review matters relating to the reimbursement of expenses purportedly incurred by defendant Nadal.
Following this news, 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, fell 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.
If you are a member of the class described above, you may no later than September 29, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com