Berman Tabacco

Digital Domain Media Group, Inc.

In re Digital Domain Media Group, Inc. Securities Litigation, 12-14333-CIV (S.D. Fla.)

As co-lead counsel, Berman Tabacco obtained a $5,500,000 settlement on behalf investors of Digital Domain Media Group, Inc. that was approved by the both bankruptcy court and the Southern District of Florida. The lead plaintiffs alleged that DDMG, a digital production company that was forced to file for bankruptcy in September 2012, less than 10 months after its initial public offering (“IPO”), misled investors in documents filed with the U.S. Securities and Exchange Commission as part of the IPO and in other statements made throughout the class period. Among other things, the lawsuit alleged that the defendants misled the public about DDMG’s ability to raise capital and fund its operations, falsely reassuring investors about the company’s ability to meet operating expenses while it “burned” cash at a rate that threatened its viability. In fact, according to a September 18, 2012 article in the Palm Beach Post, DDMG had difficulties meeting payroll as far back as 2010. According to the same article, then-Chairman and CEO John C. Textor “himself predicted a ‘train wreck’ in an email to an investor in early 2010.”

Case Information

  • Settlement Amount:
    $5,500,000