September 10, 2015
Bernstein Liebhard LLP today announced that less than three weeks remain for investors to file a motion for lead plaintiff in a class action pending in 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 24, 2013 and April 27, 2015 (the “Class Period”). The action alleges 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”).
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 Securities and Exchange Commission (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.
Plaintiffs seek to recover damages on behalf of all Class members who invested in MDC common stock during the Class Period. If you invested in MDC common stock as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than September 29, 2015.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.