NEW YORK, Aug. 05, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased MDC Partners, Inc. (“MDC” or the “Company”) (NYSE:MDCA) securities during the period between September 24, 2013 and April 27, 2015 (the “Class Period”). The Complaint charges MDC and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
The Complaint alleges during the Class Period, 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. The Complaint alleges these material misstatements and omissions had the cause and effect of creating in the market an unrealistically positive assessment of MDC and its business, prospects and operations, thus causing the Company’s securities to be overvalued and artificially inflated. As a result, the Complaint alleges that MDC securities traded at artificially inflated prices and the investing public suffered damages.
On April 27, 2015, after the close of trading, MDC issued a press release announcing its financial results for the period ended March 31, 2015. The press release also reported that the Securities and Exchange Commission (“SEC”) had been conducting a formal investigation into the Company’s reporting of executive compensation and goodwill. In response to these revelations, the price of MDC securities, which traded near the Class Period high of $28.65 per share on the last day of the Class Period, plummeted 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 wish to serve as lead plaintiff, you must move the Court no later than September 29, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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