Abraham, Fruchter & Twersky, LLP Announces Class Action Lawsuit Against DG FastChannel, Inc.
Abraham, Fruchter & Twersky, LLP announces that a class action law suit has been filed on behalf of purchasers of DG FastChannel, Inc. (“DG FastChannel” or the “Company”) (NASDAQ:DGIT) stock between February 16, 2010 through August 29, 2010 (the “Class Period”), including purchasers of the Company’s April 8, 2010 public offering of common stock.
The Complaint alleges that the Company failed to disclose materially adverse conditions relating to a material shift in customer mix for the Company's Pathfire service. Defendants took advantage of the artificially inflated stock price. During the Class Period, Ginsburg sold approximately 1,085,484 shares for proceeds of approximately $40 million, and on April 8, 2010, the Company sold approximately $108 million in common stock in a public offering at a price of $31.50 per share.
The material facts adversely affecting the Company were disclosed on August 30, 2010, when DG FastChannel issued a press release disclosing these adverse conditions to the public. This caused shares of DG FastChannel to decline from a prior day close on August 29, 2010 of $24.54 per share, to close at $15.11 per share, a decline of $9.43 per share or approximately 38% on heavier than usual volume.
If you purchased DG FastChannel common stock during the Class Period of February 16, 2009 through August 29, 2010, and you wish to serve as lead plaintiff in this action, you must move the Court no later than November 12, 2010. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Jack G. Fruchter or Arthur J. Chen of Abraham, Fruchter & Twersky, LLP at (800) 440-8986, or via e-mail at firstname.lastname@example.org or email@example.com. Abraham, Fruchter & Twersky, LLP has extensive experience prosecuting securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services.
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