CASES
DG FastChannel. Inc.
Class Period: Feb 16, 2010 to Aug 29, 2010
Summary of Case:
Summary of the Case:
A securities class action has been filed against DG FastChannel, Inc. (DGIT) ("DG FastChannel" or the "Company") on behalf of all securities purchasers from August 4, 2010 through August 27, 2010, inclusive ("Class Period"), in the United States District Court for the Southern District of New York.
The complaint alleges that The complaint alleges, among other things, that on August 2010, DG FastChannel, Inc. ("DG FastChannel" or the "Company") shocked the market by reporting that for the third quarter of 2010 it expects revenues of $51-53 million and EBITDA of $23-24 million, far less than the market was anticipating, and in marked contrast to what defendants had represented just a few weeks earlier. Rather, the Company revealed a major shortfall with its major SD transmission business, and subpar performance at its Path fire subsidiary.
On this news, allegedly, the price of DG FastChannel's stock plummeted 38%. Furthermore, the decline in DG FastChannel's stock price was a direct result of the nature and extent of defendants' false statements being revealed to investors and the market.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.