Science & Technology
Mon, June 18, 2012
LOS ANGELES--([ BUSINESS WIRE ])--Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of all purchasers of the common stock of ModusLink Global Solutions, Inc. ("ModusLinka or the aCompanya) (NASDAQ:MLNK) between September 26, 2007 and June 8, 2012, inclusive (the aClass Perioda), seeking to pursue remedies under the Securities Exchange Act of 1934.
"certain client contracts have not been aligned consistently with ModusLinkas practice of retaining volume discounts."
ModusLink, through its subsidiaries, provides supply chain business process management solutions worldwide. The Complaint alleges that the Company and certain of its executive officers issued false and/or misleading statements concerning the Companyas business and financial prospects. Specifically, defendants misrepresented or failed to disclose that: (1) the Companyas accounting for rebates associated with volume discounts provided by vendors was improper and misleading; (2) the Companyas financial statements during the Class Period did not provide a fair presentation of the Companyas finances and operations; (3) as a result, the Companyas financial results were not prepared in accordance with GAAP; (4) the Company lacked adequate internal and financial controls; and (5), as a result of the above, the Companyas financial statements were materially false and misleading at all relevant times.
On June 11, 2012 ModusLink issued a press release disclosing that an internal investigation of the audit committee of the Companyas board of directors determined that "certain client contracts have not been aligned consistently with ModusLinkas practice of retaining volume discounts." In addition, the Company disclosed that the audit committee had also identified instances where "vendor costs incurred were marked-up to clients in a manner not consistent with client contracts." As a result of this news, ModusLink shares plunged 34.74%, to close at $2.78 on June 11, 2012 on unusually heavy volume of more than 1.3 million shares traded.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased ModusLink common stock between September 26, 2007 and June 8, 2012, you have certain rights, and have 60 days from June 12, 2012 to move for lead plaintiff status. 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 class member. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to [ shareholders@glancylaw.com ].
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
