BOCA RATON, FL -- (Marketwire) -- 06/12/12 -- Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the District of Massachusetts against ModusLink Global Solutions, Inc. ("ModusLink" or the "Company") (NASDAQ: MLNK) on behalf of investors who purchased or otherwise acquired the common stock of the Company during the period from September 26, 2007 through June 8, 2012 (the "Class Period"). The complaint brings forth claims for violations of the Securities Exchange Act of 1934.
ModusLink provides supply chain management services and solutions. On June 11, 2012, the Company announced that it would need to restate financial results going back to 2007 and that its Audit Committee investigation found that certain client contracts were consistently misaligned with the Company's practice of retaining volume discounts. Additionally, the Committee found instances where vendor costs incurred were marked up to clients inconsistent with contracts.
Concurrently with these stunning announcements, the Company also disclosed that the Securities and Exchange Commission had launched an inquiry into these matters, and that ModusLink's President and Chief Executive Officer, Defendant Joseph C. Lawler, was immediately resigning from his positions with ModusLink and the Company's Board of Directors. In addition, the Company also announced the immediate departure of William R. McLennan, President, Global Operations for ModusLink.
In reaction to the Company's announcements, ModusLink's stock price plunged 34.74% to close at $2.78 on June 11, 2012.
You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased ModusLink stock between September 26, 2007 and June 8, 2012, inclusive, you may contact Joe White or Marc Grobler at Saxena White P.A. to discuss your rights and interests.
If you purchased ModusLink common stock during the Class Period of September 26, 2007 through June 8, 2012, inclusive, and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than August 11, 2012. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., located in Boca Raton, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.