Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the District of Massachusetts on behalf of investors who purchased ModusLink Global Solutions, Inc. (“ModusLink” or the “Company”) (Nasdaq: MLNK) securities between September 26, 2007 and June 8, 2012.
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The Complaint alleges that the Company and certain of its executive officers misrepresented or failed to disclose that: (a) the Company’s accounting for rebates associated with volume discounts provided by vendors was improper and misleading; (b) the Company’s financial statements during the Class Period did not provide a fair presentation of the Company’s finances and operations; (c) as a result, the Company’s financial results were not prepared in accordance with GAAP; (d) the Company lacked adequate internal and financial controls; and (e) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.
On June 11, 2012, ModusLink announced it received an inquiry from the SEC relating to the Company’s accounting treatment of rebates associated with volume discounts provided by vendors. The Company also announced that it initiated an internal investigation into those and other matters. As a result of the accounting evaluation, the Company expects to restate its audited financial statements from fiscal years 2009 through 2011, as well as the first two quarters of fiscal 2012 and its unaudited selected financial data for fiscal years 2007 and 2008. As a result of this news, ModusLink shares dropped from a close of $4.26 on June 8, 2012 to close at $2.78 on June 11, 2012 - a drop of 34%.If you suffered a loss in ModusLink you have until August 13, 2012 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. To obtain additional information, contact Joseph E. Levi, Esq. either via email at email@example.com or by telephone at (877) 363-5972, or visit http://zlk.9nl.com/moduslink-global-solutions-inc-mlnk. Levi & Korsinsky is a national firm with offices in New York and Washington D.C. The firm has extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities and shareholder lawsuits. For more information, please feel free to contact any of the attorneys listed below. Attorney advertising. Prior results do not guarantee similar outcomes.