MDC Partners Inc
|Company Name||MDC Partners Inc|
The Firm announces that it is investigating potential claims on behalf of investors of MDC Partners Inc. (“MDCA” or the “Company”) (NASDAQ:MDCA) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by the Company concerning MDCA’s business and financial prospects.
MDCA provides marketing, activation and communications, and consulting solutions and services worldwide. Specifically, the investigation relates to the Company’s April 28, 2015 announcement that the Company had received a subpoena from the Securities and Exchange Commission (the “SEC”) relating to the reimbursement of expenses incurred by the CEO and the Company’s goodwill and certain other accounting practices, as well as information relating to trading in the Company’s securities by third parties. The Company further disclosed that the Company had formed a Special Committee of independent directors to investigate these expenses and that as a result of the investigation, which found that there was incomplete documentation for much of these expenses, the Company’s CEO agreed to reimburse the Company $8.6 million. Additionally, the Company disclosed that during the fiscal quarter the Company incurred approximately $5.8 million in legal fees and other related expenses relating to the SEC inquiry.
On this news, shares of MDCA fell $9.09 per share, to $18.89, or more than 32.48%, in intraday trading on April 28, 2015.
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