NEW YORK, Aug. 4, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been filed the United States District Court for the Southern District of New York on behalf of purchasers (the "Class") of common stock of MDC Partners, Inc. ("MDC" or the "Company") (Nasdaq:MDCA) during the period of September 23, 2013 and April 27, 2015 (the "Class Period") alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
If you purchased MDC Securities during the Class Period, you may, no later than September 29, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. 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.
If you want more information about the MDCA Securities Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com
The Complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose materially adverse information regarding MDC's business, executive compensation, related-party transactions, goodwill, prospects and operations. The Complaint alleges that as a result of these material misstatements and omissions MDC common stock traded at artificially inflated prices and the investing public suffered damages.
On April 27, 2015, along with its first quarter financial results, the Company announced that: (1) on October 5, 2014, it had received a subpoena from the SEC related to the reimbursement of expenses incurred by CEO Miles Nadal, the Company's goodwill, and certain other accounting practices; (2) as a result of an investigation by a Special Committee of independent directors formed in response to the subpoena Mr. Nadal had agreed to reimburse the Company $8.6 million; and (3) during the fiscal quarter the Company incurred approximately $5.8 million in legal fees and other related expenses related to the SEC inquiry.
Following this news, the price of MDC common stock 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.
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