SOURCE: Saxena White P.A.
BOCA RATON, FL--(Marketwire - Oct 19, 2012) - Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the Southern District of Florida against Digital Domain Media Group, Inc. ("Digital Domain" or the "Company") (OTCQB: DDMGQ) on behalf of investors who purchased or otherwise acquired the common stock of the Company during the period from November 18, 2011 through September 6, 2012 (the "Class Period"), including purchases of Digital Domain's common stock in or traceable to the Company's November 18, 2011 initial public offering, (the "IPO"). The complaint brings forth claims for violations of the federal securities laws.
Saxena White P.A. is securities litigation law firm based in Boca Raton, Florida and the pending litigation will be litigated in the Southern District of Florida.
Digital Domain, which is based in Port St. Lucie, Florida, offers digital production services to the motion picture and television industries. The complaint alleges that Digital Domain was forced to file for bankruptcy in September 2012, less than 10 months after its IPO, and the Company misled investors in documents filed with the SEC as part of the Offering and in other statements made throughout the Class Period.
Specifically, the complaint alleges that, among other things, Digital Domain misled the public about the Company's ability to raise capital and fund its operations, falsely reassuring investors about the Company's ability to meet operating expenses while it "burned" cash at a rate that threatened its viability. In fact, according to a September 18, 2012 article in the Palm Beach Post, Digital Domain had difficulties meeting payroll as far back as 2010. According to the same article, then-Chairman and CEO John C. Textor "himself predicted a 'train wreck' in an email to an investor in early 2010."
The truth of the Company's financial situation was revealed in a series of disclosures beginning with an August 1, 2012 press release stating that Digital Domain would explore "a broad range of strategic and financial alternatives" and culminating with its filing for Chapter 11 bankruptcy protection. As a result of these disclosures, the value of the Company's stock has declined significantly, damaging investors.
You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased Digital Domain stock between November 18, 2011 and September 6, 2012, inclusive, you may contact Joe White or Marc Grobler at Saxena White P.A. to discuss your rights and interests.
If you purchased Digital Domain common stock during the Class Period of November 18, 2011 through September 6, 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 November 19, 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.