The Briscoe Law Firm and Powers Taylor, LLP Announce Investigation Into ModusLink Global Solutions, Inc.
Published on Friday, 15 June 2012 17:01 Written by TradersHuddle StaffDALLAS-( Business Wire )-
Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of ModusLink Global Solutions, Inc. (“Company”) (NASDAQGS: MLNK) related to potential securities violations by the Company between September 26, 2007 and June 8, 2012 (the “Class Period”).
The Company and certain of its officers and directors were charged with violating certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges that defendants misrepresented and/or failed to disclose that: (1) ModusLink’s accounting for rebates associated with certain volume discounts was improper and misleading; (2) the Company’s financial statements during the Class Period did not provide a fair presentation of the Company’s finances and operations; (3) ModusLink's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (4) the Company lacked adequate internal controls; and (5), as a result of the above, ModusLink’s financial statements were materially false and misleading at all relevant times.
On June 11, 2012, ModusLink issued a press release acknowledging that its financial statements from fiscal years 2009 through 2011, as well as the first two quarters of fiscal year 2012, could no longer be relied upon. On this news, shares of ModusLink declined by $1.48, or 34% of their value, to close on June 11, 2012, at just $2.78 per share.
According to shareholder rights attorney Willie Briscoe, “The recent revelations about ModusLink’s alleged misrepresentations regarding its business and financial status are particularly troubling. This has led our firms to investigate possible breaches of fiduciary duties and other violations of state law by ModusLink’s officers and directors. Based on our investigation, we are prepared to institute litigation to preserve the company and the value of ModusLink stock for all shareholders.”
The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.
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