Abraham, Fruchter & Twersky, LLP Announces
Class Action Lawsuit against DG FastChannel, Inc.
September 15, 2010 01:34 PM Eastern Daylight Time
NEW YORK--(EON: Enhanced Online News)--Abraham, Fruchter & Twersky, LLP announces that a class
action law suit has been filed on behalf of purchasers of DG FastChannel, Inc. (“DG FastChannel” or the
“Company”) (NASDAQ:DGIT) stock between February 16, 2010 through August 29, 2010 (the “Class Period”),
including purchasers of the Company’s April 8, 2010 public offering of common stock.
The Complaint alleges that the Company failed to disclose materially adverse conditions relating to a material shift in
customer mix for the Company's Pathfire service. Defendants took advantage of the artificially inflated stock price.
During the Class Period, Ginsburg sold approximately 1,085,484 shares for proceeds of approximately $40 million,
and on April 8, 2010, the Company sold approximately $108 million in common stock in a public offering at a price
of $31.50 per share.
The material facts adversely affecting the Company were disclosed on August 30, 2010, when DG FastChannel
issued a press release disclosing these adverse conditions to the public. This caused shares of DG FastChannel to
decline from a prior day close on August 29, 2010 of $24.54 per share, to close at $15.11 per share, a decline of
$9.43 per share or approximately 38% on heavier than usual volume.
If you purchased DG FastChannel common stock during the Class Period of February 16, 2009 through August 29,
2010, and you wish to serve as lead plaintiff in this action, you must move the Court no later than November 12,
2010. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain a member of the proposed class.
If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential
class member or lead plaintiff, you may contact: Jack G. Fruchter