BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors of MDC Partners, Inc. ("MDC" or the "Company") (NASDAQ:MDCA) who purchased shares between September 23, 2013 and April 27, 2015, inclusive (the “Class Period”) and have been damaged by the recent declines in the Company’s stock price. MDC investors have until September 29, 2015 to file a lead plaintiff motion. Investors who suffered losses in excess of $50,000 are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights.
The complaint alleges that MDC and certain of its executives failed to disclose material information to investors in violation of federal securities laws, including information regarding MDC's business, executive compensation, related-party transactions, goodwill, prospects and operations. On April 27, 2015, MDC reported that (1) on October 5, 2014, it had received a subpoena from the Securities and Exchange Commission (the "SEC") related to the reimbursement of expenses incurred by CEO Miles Nadal, the Company's goodwill, and certain other accounting practices; (2) as a result of an investigation by Special Committee of independent directors formed in response to the subpoena Mr. Nadal had agreed to reimburse the Company $8.6 million; and (3) during the fiscal quarter the Company incurred approximately $5.8 million in legal fees and other related expenses related to the SEC inquiry. When the truth was revealed to investors, the price of MDC’s shares declined sharply, by $7.78 per share or nearly 30%, thereby damaging investors.
If you purchased shares of MDC during the Class Period you may move the Court no later than September 29, 2015 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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