Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of ModusLink Global Solutions, Inc. (“Company”) (NASDAQGS: MLNK) related to potential securities violations by the Company between September 26, 2007 and June 8, 2012 (the “Class Period”).
If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Zach Groover at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
The Company and certain of its officers and directors were charged with violating certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges that defendants misrepresented and/or failed to disclose that: (1) ModusLink’s accounting for rebates associated with certain volume discounts was improper and misleading; (2) the Company’s financial statements during the Class Period did not provide a fair presentation of the Company’s finances and operations; (3) ModusLink's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (4) the Company lacked adequate internal controls; and (5), as a result of the above, ModusLink’s financial statements were materially false and misleading at all relevant times.
On June 11, 2012, ModusLink issued a press release acknowledging that its financial statements from fiscal years 2009 through 2011, as well as the first two quarters of fiscal year 2012, could no longer be relied upon. On this news, shares of ModusLink declined by $1.48, or 34% of their value, to close on June 11, 2012, at just $2.78 per share.