NEW YORK, May 8, 2013 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Texas on behalf of all persons or entities who purchased the common stock of Digital Generation, Inc. ("Digital") (Nasdaq:DGIT) between June 20, 2011 and February 19, 2013, seeking remedies under the federal securities laws.
The Complaint alleges that throughout the Class Period, Digital touted itself as a company achieving steady and consistent growth, and poised for a strategic buyout on the basis of its strong performance and diversification. In order to cultivate this image, Digital allegedly made a series of false and/or misleading statements regarding its growth and value of its acquisitions, failing to disclose that: (i) Digital's online segment was grossly underperforming, and well below the value reported to investors; (ii) Digital's past acquisitions had masked its declining revenue base; (iii) Digital had vastly overpaid for its acquisition of Media Mind, Inc. and other online segments in order to appear to be an attractive acquisition target; (iv) Digital was not sufficiently poised for a strategic partnership or buyout; and (v) as a result of the above, Digital's financial statements were materially false and misleading at all relevant times.
If you wish to serve as lead plaintiff, you must move the Court no later than July 1, 2013. 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 firstname.lastname@example.org or email@example.com.
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CONTACT: Gainey McKenna & Egleston (212) 983-1300Source:Gainey McKenna& Egleston