The latest development in the MDC Partners saga involves press releases from multiple New York-area law firms announcing that a class action suit has been filed against the holding company on behalf of its investors.
This is not a new story, per se: way back in May, “global investor rights law firm” Rosen sent out a release to announce that it “is continuing to investigate potential securities claims on behalf of investors,” and every other similiarly focused firm in New York appears to have followed suit: there’s Levi & Korsinsky, LLP; Bronstein, Gewirtz & Grossman, LLC; Bernstein Liebhard LLP; you get it.
These firms’ names may start to blend together after a while, but they’re all chasing the same claim: that MDC made “false and misleading statements and/or failed to disclose materially adverse information” during the period from September 2013 to April 2015, thereby leading shareholders to unexpectedly lose money as the company’s stock value dropped. Of course this all stems from the April news that the Securities and Exchange Commission had been investigating now-former CEO Miles Nadal.
The reason all these press releases went out yesterday is that MDC will announce its Q2 results later this week, and the principals at the firms listed above are sitting by their phones in anticipation.
The company’s stock prices saw a big drop in April after the news broke, and they’ve yet to recover–they’re currently selling for $16.82 when the price had been $28.40. At the same time, the current total isn’t too much lower than it was one year ago ($20.37).
So if you “purchased or otherwise acquired MDC securities between September 24, 2013 and April 27, 2015” and feel that you were somehow damaged by the company’s subsequent actions or lack thereof, get in line.
Many enterprising lawyers will be glad to hear you out, whether you are a professional investor or a career firefighter desperate to save his/her pension plan (yes, really).
And don’t say advertising doesn’t impact the real world.