NEW YORK, Aug. 3, 2015 /PRNewswire/ — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC reminds investors that a securities class action has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased shares of MDC Partners, Inc. (“MDC Partners” or the “Company”) (NasdaqGS: MDCA), during the period between September 24, 2013 and April 27, 2015 inclusive. (the “Class Period”).
The lawsuit alleges that during the Class Period, defendants made or caused to be made a series of materially false or misleading statements about MDC Partners’ business, executive compensation, related-party transactions, goodwill, prospects and operations. These material misstatements and omissions had the cause and effect of creating in the market an unrealistically positive assessment of MDC Partners and its business, prospects and operations, thus causing the Company’s common stock to be overvalued and artificially inflated.
On April 27, 2015, the Company announced in press release its financial results for the first quarter ended March 31, 2015. Additionally, the Company disclosed that: (a) since October 5, 2014, the Company has been actively cooperating with an SEC investigation relating to the reimbursement of expenses incurred by the CEO, Miles Nadal; (b) Mr. Nadal agreed to reimburse the Company $8.6 million which the Company had sought for reimbursement; (c) During the quarter ended March 31, 2015, the Company incurred approximately $5.8 million in legal fees and other related expenses relating to the SEC inquiry; and (d) the Company reassigned its Chief Accounting Officer, Michael Sabatino to Senior Vice President, Special Projects.
Following this news, shares of MDC Partners has fallen as much as $9.34 per share, or 33.38%, during intraday trading to trade at $18.64 on April 28, 2015.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Coordinator Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in MDC Partners you have until September 29, 2015 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Eitan Kimelman 212-697-6484
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