Digital Generation, Inc.

Digital Generation, Inc. Sued by Investor

Shareholder rights attorneys at Robbins LLP remind investors of the July 1, 2013 deadline to file for lead plaintiff in the class action lawsuit filed on behalf of purchasers of Digital Generation, Inc. (NASDAQ: DGIT) between June 20, 2011 and February 19, 2013 (the “Class Period”), in the U.S. District Court for the Northern District of Texas.  The class action seeks to recover damages against Digital Generation and certain of its officers and directors for alleged violations of the Securities Exchange Act of 1943.

The complaint alleges that during the Class Period, Digital Generation failed to disclose that: (i) the company’s online segment performance was significantly below the value reported to investors; (ii) prior acquisitions had disguised the company’s declining revenue base; (iii) in order to appear to be an attractive acquisition target, the company had vastly overpaid for its acquisition of online segments, including Media Mind, Inc. (“Media Mind”); (iv) the company was not adequately poised for a strategic partnership or buyout; and (v) as a result, the company’s financial statements were materially false and misleading during the Class Period.

On November 8, 2012, Digital Generation announced that for the quarter ending September 30, 2012, the company would take impairment charges of: (i) over $208 million against recently acquired online media assets, including Media Mind, representing a 33% write down of the purchase price and; (ii) $131 million for its television unit.

Shortly thereafter, on February 19, 2013, Digital Generation announced: (i) an additional write down of online segments of $11.4 million; and (ii) that a Special Committee of the board of directors had failed to attract a buyout partner or strategic alternative.  On this news, Digital Generation’s stock price dropped more than 28%, or $2.53 per share, to close at $6.45 per share on February 19, 2013.

To discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003 or you can complete the form below and we will contact you directly.

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