Faruqi & Faruqi Alert: MDC Partners, Inc.
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in MDC Partners, Inc. (“MDC” or the “Company”) (NasdaqGS:MDCA) of the September 29, 2015 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who purchased MDC securities between September 24, 2013, and April 27, 2015 (“Class Period”).
The complaint alleges that MDC’s SEC filings materially understated the Company’s executive compensation while its financial statements failed to disclose certain related party transactions. The complaint also claims that the Company’s reported goodwill was materially overstated.
Specifically, on April 27, 2015, MDC announced its financial results for the period ended March 31, 2015 and disclosed that the SEC had been conducting a formal investigation into the Company’s reporting of executive compensation and goodwill. The Company also announced the creation of a Special Committee to conduct an internal investigation in regards to the reimbursement of expenses purportedly incurred by defendant Miles Nadal, MDC’s Chairman, Chief Executive Officer, and President during the Class Period.
After this announcement, the MDC share price fell from a closing price of $27.98 per share on April 27, 2015 to a closing price of $20.20 on August 8, 2015—$7.78, or a 27.9% drop.
If you invested in MDC stock or options between September 24, 2013 and April 27, 2015 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding MDC’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.