NEW YORK, July 11, 2012 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit (1:12-cv-11279) against ModusLink Global Solutions, Inc. ("ModusLink" or the "Company") (Nasdaq:MLNK) and certain of its officers. The class action, filed in United States District Court, District of Massachusetts, is on behalf of a class consisting of all persons or entities who purchased ModusLink securities between September 26, 2007 and June 8, 2012, inclusive (the "Class Period").
If you are a shareholder who purchased ModusLink securities during the Class Period, you have until August 13, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The action concerns whether ModusLink made materially false and misleading statements and omissions regarding its financial performance and future prospects. On June 11, 2011, the Company announced that it will restate its financial results since fiscal 2009 and delay filing its results for its most recent quarter because of accounting irregularities. The Company said that an investigation by its audit committee found that certain client contracts were not aligned correctly with their appropriate volume discounts.
The restatements are expected to reduce the ModusLink's revenue for fiscal years 2009 through 2011, and the first two quarters of 2012. The Securities and Exchange Commission is also investigating the issues. The Company also reported that its CEO will be retiring once a replacement is found.
On this news, ModusLink share prices fell $1.48 or 35% to close at $2.78.
The Pomerantz Firm, with offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.