ModusLink Global Solutions, Inc MLNK Securities Lawsuit

Company:	ModusLink Global Solutions, Inc
Ticker Symbol:	MLNK
Class Period:	Sep-26-07 to Jun-8-12
Date Filed:	Jun-13-12
Lead Plaintiff Deadline:	Aug-12-12
Court:	District of Massachusetts
Allegations:

Los Angeles, CA: A securities class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of all purchasers of the common stock of ModusLink Global Solutions, Inc. ("ModusLink" or the "Company") between September 26, 2007 and June 8, 2012, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934.

ModusLink, through its subsidiaries, provides supply chain business process management solutions worldwide. The Complaint alleges that the Company and certain of its executive officers issued false and/or misleading statements concerning the Company's business and financial prospects. Specifically, defendants misrepresented or failed to disclose that: (1) the Company's accounting for rebates associated with volume discounts provided by vendors 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) as a result, the Company's financial results were not prepared in accordance with GAAP; (4) the Company lacked adequate internal and financial controls; and (5), as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.

On June 11, 2012 ModusLink issued a press release disclosing that an internal investigation of the audit committee of the Company's board of directors determined that "certain client contracts have not been aligned consistently with ModusLink's practice of retaining volume discounts." In addition, the Company disclosed that the audit committee had also identified instances where "vendor costs incurred were marked-up to clients in a manner not consistent with client contracts." As a result of this news, ModusLink shares plunged 34.74%, to close at $2.78 on June 11, 2012 on unusually heavy volume of more than 1.3 million shares traded.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

ModusLink Global Solutions, Inc MLNK Securities Fraud Legal Help

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Published on Jun-13-12