NEW YORK, July 17, 2012 /PRNewswire/ -- Bernstein Liebhard LLP today announced that approximately four weeks remain – until August 13, 2012 – to file a motion for lead plaintiff in a securities class action lawsuit pending against ModusLink Global Solutions, Inc. ("ModusLink" or the "Company").
A case was recently commenced in the United States District Court for the District of Massachusetts on behalf of a class of purchasers of ModusLink (NASDAQ: MLNK) common stock between September 26, 2007 through June 8, 2012 (the "Class Period"). The complaint alleges violations of the Securities Exchange Act of 1934.
ModusLink provides supply chain management services and solutions. On June 11, 2012, the Company announced that it would need to restate financial results going back to 2007 and that its Audit Committee investigation found that certain client contracts were consistently misaligned with the Company's practice of retaining volume discounts. Additionally, the Committee found instances where vendor costs incurred were marked up to clients inconsistent with contracts.Concurrently with these announcements, the Company also disclosed that the Securities and Exchange Commission had launched an inquiry into these matters, and that ModusLink's President and Chief Executive Officer, Defendant Joseph C. Lawler, was immediately resigning from his positions with ModusLink and the Company's Board of Directors. In addition, the Company also announced the immediate departure of William R. McLennan, President of Global Operations for ModusLink. In reaction to the Company's announcements, ModusLink's stock price plunged 34.74% to close at $2.78 on June 11, 2012. Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired ModusLink common stock during the Class Period. If you purchased or otherwise acquired ModusLink common stock during the Class Period, and either lost money on the transaction or still hold the shares, 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 August 13, 2012. 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.