Robbins Umeda LLP Announces the Filing of a Class Action Suit Against ModusLink Global Solutions, Inc.
Robbins Umeda LLP announces the filing of a federal securities class action by an investor in the U.S. District Court for the District of Massachusetts, on behalf of purchasers of ModusLink Global Solutions, Inc. (NASDAQ: MLNK) (“ModusLink” or the “Company”) shares between September 26, 2007 and June 8, 2012 (the “Class Period”).
The complaint alleges that ModusLink and certain of its executive officers issued false and/or misleading statements concerning the Company’s business and financial prospects. Specifically, defendants misrepresented 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 revealing that an internal investigation by the audit committee of the Company’s board of directors had determined that certain client contracts were not aligned with the Company’s practice of retaining volume discounts. The press release also contained the acknowledgement that as a result of the committee’s findings, ModusLink’s 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.
If you purchased or otherwise acquired ModusLink stock during the Class Period and wish to serve as lead plaintiff, you must act no later than August 12, 2012. To discuss your shareholder rights, please contact attorney Gregory E. Del Gaizo at 800-350-6003, via email at info@robbinsllp.com, or via the shareholder information form.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
