TORONTO–(BUSINESS WIRE)–Morganti Legal, announces that investors have filed a shareholder lawsuit against MDC Partners (TSX: “MDZ.A” and NASDAQ: “MDCA”, CUSIP 552697), Miles Nadal, Michael Sabatino, David Doft, and BDO USA, LLP for publishing press release containing alleged Misrepresentations and failing to disclose Material Facts about its business operations and finances between November 5, 2013 and April 27, 2015.
The complaint alleges that MDC and certain of its senior executive officers made a series of false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, executive compensation and related-party transactions. Additionally, the claim highlights that Defendant Miles Nadal sold over $80 million in MDC securities during the Class Period.
On April 27, 2015, MDC issued a press release disclosing that the SEC had been conducting a formal investigation into the Company’s reporting of executive compensation and goodwill, and that MDC had formed a Special Committee of independent directors (the “Special Committee”) to review matters relating to the reimbursement of expenses purportedly incurred by MDC’s Chief Executive Officer (“CEO”). The press release further reported that, following the Special Committee’s investigation, MDC’s CEO agreed to repay the Company $8.6 million, and that the SEC’s investigation into the Company’s accounting for goodwill and certain other accounting practices was believed to be in “an early stage.”
After this announcement, the Company’s value materially dropped by 28.4% and its chief operating officer resigned.
Non-NASDAQ investors who purchased MDC’s securities between November 5, 2013 and April 27, 2015, are encouraged to stay informed. You may contact us toll-free at (888) 226-0845 or by email at [email protected] for further information.
Morganti Legal is a law firm that investigates, litigates and resolves economic and financial disputes. You may learn more about Morganti Legal at www.morgantilegal.com. The Firm currently represents investors in that purchased securities of Allied Nevada Gold Corp, BP plc, Detour Gold Corp, Ithaca Energy Limited, and other cross-listed securities on the Toronto and American and European stock exchanges.
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