On June 18, 2012, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court, District of Massachusetts, on behalf of all persons who purchased the common stock of ModusLink Global Solutions, Inc. (“ModusLink” or the “Company”) (NASDAQ: MLNK) between September 26, 2007 and through and including June 8, 2012 (the “Class Period”), against the Company and certain of the Company’s current and former officers and directors, alleging fraud pursuant to Sections 10(b) and 20(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the “Class”). The case name is styled Shnerer v. Lawler, et al., Case 1:12-cv-11078. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com. The complaint alleges that Defendants knew or recklessly disregarded numerous facts known to them during the Class Period concerning the Company’s profitability, business and accounting practices. It is further alleged that Defendants continually issued statements in its SEC filings that were materially false and misleading. Specifically: a) The Company’s scheme was to aggregate its business in order to acquire volume discounts from vendors, and then mark up the discounts to clients without their knowledge, inconsistent with their contracts, and incorrectly account for these discounts and mark-ups as revenue; b) All of the press releases and Form 10-Ks and Form 10-Qs issued by the Company and the Individual Defendants during the Class Period were materially false and misleading because they did not accurately reflect the Company’s treatment of rebates associated with volume discounts by vendors; and c) Defendants continually made false and materially misleading statements and omissions during the Class Period concerning the Company’s treatment of rebates associated with volume discounts provided by vendors, vendor costs which were marked-up to clients in a manner not consistent with client contracts, volume discounts and mark-ups incorrectly accounted for as revenue, the Company’s accounting practices, generally, and the Company’s revenue and net income.
On the morning of June 11, 2012, ModusLink disclosed, for the first time that the Company had continually reported inflated revenue and net income figures during the Class Period and that it would restate its financial results going back to 2007, as a result of its serious problems in how it accounted for revenues and net income, as well as the way it billed customers for certain services. The press release also stated that ModusLink President and Chief Executive Officer Joseph C. Lawler would be stepping down and also relinquishing his seat on the Board of Directors, effective immediately.In ignorance of the false and misleading nature of the statements described in the complaint, and the deceptive and manipulative devices and contrivances employed by said defendants, plaintiff and the other members of the Class relied, to their detriment, on the integrity of the market price of ModusLink common stock. Had plaintiff and the other members of the Class known the truth, they would not have purchased said common stock, or would not have purchased them at the inflated prices that were paid. If you purchased ModusLink common stock during the Class Period, you may request that the Court appoint you as lead plaintiff by August 11, 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 Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq. or Derek Behnke), via e-mail at firstname.lastname@example.org or visit our website at www.whafh.com. All e-mail correspondence should make reference to ModusLink.