Shareholders Foundation, Inc.

Digital Domain Media Group Inc (PINK:DDMGQ) Investor Alert: Lawsuit Against Former Directors and Executives Filed

A lawsuit was filed for investors in shares of Digital Domain Media Group Inc (PINK:DDMGQ) over alleged securities law violations. Deadline: November 19, 2012 and investors with a substantial investment in Digital Domain Media Group Inc (PINK:DDMGQ) shares should contact the Shareholders Foundation.

 

San Diego, CA -- (ReleaseWire) -- 09/24/2012 -- An investor in shares of Digital Domain Media Group Inc (PINK:DDMGQ, formerly NYSE:DDMG) filed a lawsuit in the U.S. District Court for the Southern District of Florida against former directors and executives of Digital Domain Media Group Inc over alleged securities laws violations.

Investors who purchased shares of Digital Domain Media Group Inc (PINK:DDMGQ, formerly NYSE:DDMG) between the company’s initial public offering (“IPO”) on November 18, 2011 and September 6, 2012 , have certain options and there are short and strict deadlines running. Deadline: November 19, 2012. Investors who purchased a significant amount of NYSE:DDMG shares should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of those who purchased or otherwise acquired Digital Domain Media Group Inc (PINK:DDMGQ, formerly NYSE:DDMG) common stock between November 18, 2011 and September 6, 2012 and / or those who purchased or otherwise acquired PINK:DDMGQ (formerly NYSE:DDMG) stock in or traceable to the Company’s IPO on November 18, 2011, that certain officers of Digital Domain Media Group, Inc., along with the managing underwriters of the Company’s IPO violated Federal Securities Laws.

The plaintiff alleges that Digital Domain Media Group Inc, that was forced to file for bankruptcy in September 2012, less than 10 months after its IPO, allegedly misled investors in documents filed with the SEC as part of the Offering and in other statements made between November 18, 2011 and September 6, 2012.

The plaintiff claims that, among other things, the defendants misled the public about Digital Domain Media Group’s ability to raise capital and fund its operations, allegedly falsely reassuring investors about the Digital Domain Media Group’s ability to meet operating expenses while it “burned” cash at a rate that threatened its viability.

The plaintiff says that truth of the Company’s financial situation was revealed in a series of disclosures beginning with an August 1, 2012 announcement stating that Digital Domain Media Group Inc would explore “a broad range of strategic and financial alternatives” and culminating with its filing for Chapter 11 bankruptcy protection September 11, 2012.

NYSE:DDMG shares fell from $9 per share in May 2012 to slightly over $2 per share in August 2012.

Currently Digital Domain Media Group Inc shares trade under DDMGQ at under $0.30 per share.

Those who purchased shares of Digital Domain Media Group Inc (PINK:DDMGQ, formerly NYSE:DDMG) between the company’s IPO on November 18, 2011 and September 6, 2012 , have certain options and there are short and strict deadlines running. Deadline: November 19, 2012. Investors who purchased a significant amount of NYSE:DDMG shares should contact the Shareholders Foundation,

Contact:
Shareholders Foundation, Inc.
Jacob Rosenfeld
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com