Cohen Milstein Sellers & Toll PLLC is conducting an investigation to
determine whether ModusLink Global Solutions, Inc. (“ModusLink” or the
“Company”) and certain of its officers and directors made false and
misleading statements and/or omissions in violation of Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934.
Class action lawsuits were filed in the U.S. District Court for the
District of Massachusetts by other law firms on behalf of purchasers of
the common stock of ModusLink Global Solutions, Inc. (NASDAQGS: MLNK)
between September 27, 2007 and June 8, 2012, inclusive (the “Class
The complaints allege that defendants misrepresented and/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 did not provide a fair presentation
of the Company's finances and operations and were not prepared in
accordance with GAAP; (3) the Company lacked adequate internal and
financial controls; and (4) as a result of the foregoing, the Company's
financial statements during the Class Period were materially false and
After the market close on March 12, 2012, ModusLink filed its Form 10-Q
for the second quarter of its 2012 fiscal year in which it revealed that
in response to an SEC inquiry the Company was evaluating whether certain
rebates should be shared with its clients, and whether the Company’s
accounting for such rebates had been correct.
On June 11, 2012, ModusLink issued a press release announcing that it
would restate its financial results from its 2007 fiscal year through
the first two quarters of its 2012 fiscal year after discovering that “certain
client contracts have not been aligned consistently with ModusLink’s
practice of retaining volume discounts.” The Company also reported
that it was delaying the filing of its Form 10-Q for the third quarter
of fiscal 2012 ended April 30, 2012. According to the press release, the
restatement was expected to lower ModusLink’s previously reported
revenues for the affected periods by $20 to $30 million. At the same
time, the Company announced the “retirement” of its President and CEO,
Joseph Lawler, and its President of Global Operations, William McLennan,
effective immediately. ModusLink also reported:
“Management is continuing to assess the Company’s internal control
over financial reporting and its disclosure controls and procedures, and
expects to conclude that the Company has a material weakness in its
internal control over financial reporting. Management will report its
conclusion on internal control over financial reporting and disclosure
controls and procedures upon completion of the restatement process…In
conjunction with the Company’s inability to timely file its Form 10-Q,
ModusLink expects to receive a letter from NASDAQ notifying the Company
that it is non-compliant with NASDAQ Listing Rules, which require listed
companies to timely file all required periodic financial reports with
The price of ModusLink shares fell from $4.26 to $2.78 on June 11.
Cohen Milstein encourages all investors who purchased ModusLink common
stock between September 27, 2007 and June 8, 2012 or former employees
with information concerning this matter to contact the firm.
If you are a ModusLink shareholder and would like to discuss your right
to recover for your economic loss, you may, without any cost or
obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at
(888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org.
If you wish to serve as lead plaintiff, you must move the Court no later
than August 13, 2012 to request that the Court appoint you as lead
plaintiff. A lead plaintiff is a representative party acting on behalf
of other class members in directing the litigation. To be appointed lead
plaintiff, the Court must decide that your claim is typical of the
claims of other class members, and that you will adequately represent
the class. Your share in any recovery will not be enhanced or diminished
by the decision whether or not to serve as a lead plaintiff. Any member
of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or
other attorneys to serve as your counsel in this action, or you may do
nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in
prosecuting investor class actions and actions involving securities
fraud. The firm has offices in Washington, D.C., New York, Chicago,
Philadelphia and West Palm Beach, and is active in major litigation
pending in federal and state courts throughout the nation.
The firm’s reputation for excellence has repeatedly been recognized by
courts which have appointed the firm to lead positions in complex
multi-district or consolidated litigation. Cohen Milstein Sellers & Toll
PLLC has taken a lead role in numerous important cases on behalf of
defrauded investors, and has been responsible for a number of
outstanding recoveries which, in the aggregate, total over a billion
dollars. Prior results do not guarantee a similar outcome. For more
information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with
regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers &
1100 New York Avenue, N.W.
West Tower, Suite 500
Telephone: (888) 240-0775 or (202) 408-4600