RADNOR, Pa., Aug. 24, 2015 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against MDC Partners, Inc. (Nasdaq:MDCA) (“MDC” or the “Company”) on behalf of purchasers of the Company’s common stock between September 24, 2013 and April 27, 2015, inclusive (the “Class Period”).
For additional information about this lawsuit, or to request information about this action online, please visit http://www.ktmc.com/new-cases/mdc-partners-inc.
MDC shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or at info@ktmc.com.
Through its subsidiaries, MDC provides a comprehensive range of customized marketing, activation, communications and consulting services.
The complaint alleges that MDC and certain of its senior executive officers made a series of false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, executive compensation and related party transactions. Specifically, the defendants are alleged to have made false and misleading statements and/or failed to disclose, among other things, that: (i) the disclosures in MDC’s SEC filings materially understated the Company’s executive compensation; (ii) the disclosures in MDC’s financial statements failed to disclose certain related party transactions; (iii) the Company’s reported goodwill was materially overstated; (iv) the Company’s financial statements were presented in violation of GAAP and were materially false and misleading; and (v) the Company’s disclosure controls and internal controls over financial reporting were materially deficient.
On April 27, 2015, MDC issued a press release disclosing that the SEC had been conducting a formal investigation into the Company’s reporting of executive compensation and goodwill, and that MDC had formed a Special Committee of independent directors (the “Special Committee”) to review matters relating to the reimbursement of expenses purportedly incurred by MDC’s Chief Executive Officer (“CEO”). The press release further reported that, following the Special Committee’s investigation, MDC’s CEO agreed to repay the Company $8.6 million, and that the SEC’s investigation into the Company’s accounting for goodwill and certain other accounting practices was believed to be in “an early stage.”
Following these disclosures, shares of MDC’s stock declined $7.78 per share, or over 27.8 percent, to close on April 28, 2015 at $20.20 per share, on unusually heavy trading volume.
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 (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299 – 7706 or (610) 667 – 7706, or via e-mail at info@ktmc.com. For additional information about this lawsuit, or to request information about this action online, please visit http://www.ktmc.com/new-cases/mdc-partners-inc.
Members of the class may, no later than September 29, 2015, petition the Court for appointment as a lead plaintiff of the class. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. In order to be appointed as a 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 in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299 - 7706
(610) 667 - 7706
info@ktmc.com