Labaton Sucharow LLP Announces Class Action Settlement on Behalf of Purchasers of the Securities of DG Fastchannel, Inc.

NEW YORK, July 14, 2011 /PRNewswire/ -- Labaton Sucharow LLP announces that the United States District Court for the Southern District of New York approved the following announcement of a proposed class action settlement that could benefit certain purchasers of securities of DG Fastchannel, Inc. (NASDAQ: DGIT)

UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK

IN RE DG FASTCHANNEL, INC SECURITIES LITIGATION

No. 10 Civ. 6523 (RJS)

SUMMARY NOTICE OF PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT

TO:  ALL PERSONS OR ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED THE PUBLICLY TRADED SECURITIES OF DG FASTCHANNEL ("DG" OR THE "COMPANY") DURING THE PERIOD FROM FEBRUARY 16, 2010 THROUGH AND INCLUDING AUGUST 29, 2010, AND WHO WERE ALLEGEDLY DAMAGED THEREBY (THE "CLASS").    

YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the Court, that the above-captioned litigation ("Litigation") has been preliminarily certified as a class action for the purposes of settlement only and that a settlement with DG, Scott K. Ginsburg, Neil H. Nguyen and Omar A. Choucair (collectively, the "Defendants"), in the amount of $2,000,000 in cash, has been proposed by the Parties.

A hearing will be held before the Honorable Richard J. Sullivan of the United States District Court for the Southern District of New York in the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, Courtroom 21C, New York, NY 10007-1312 at 3:30 p.m., on September 13, 2011 to, among other things: determine whether the proposed Settlement should be approved by the Court as fair, reasonable, and adequate; determine whether the proposed Plan of Allocation for distribution of the settlement proceeds should be approved as fair and reasonable; and consider the application of Lead Counsel for an award of attorneys' fees and reimbursement of litigation expenses.  The Court may change the date of the hearing without providing another notice.

IF YOU ARE A MEMBER OF THE CLASS DESCRIBED ABOVE, YOUR RIGHTS WILL BE AFFECTED BY THE PENDING LITIGATION AND THE PROPOSED SETTLEMENT AND YOU MAY BE ENTITLED TO SHARE IN THE NET SETTLEMENT FUND.  If you have not yet received the full printed Notice of Pendency of Class Action and Proposed Settlement ("Notice") and a Proof of Claim and Release Form ("Proof of Claim"), you may obtain copies of these documents by contacting the Claims Administrator:

Inquiries, other than requests for information about the status of a claim, may also be made to Lead Counsel.

If you are a Class Member, to be eligible to share in the distribution of the Settlement proceeds, you must submit a Proof of Claim postmarked no later than October 24, 2011.  To exclude yourself from the Class, you must submit a written request for exclusion in accordance with the instructions set forth in the Notice, such that it is received or postmarked no later than August 23, 2011.  If you are a Class Member and do not exclude yourself from the Class, you will be bound by the Final Order and Judgment of the Court.  Any objections to the proposed Settlement, Plan of Allocation and/or application for attorneys' fee and reimbursement of expenses must be filed with the Court and served on counsel for the Parties in accordance with the instructions set forth in the Notice, such that they are received or postmarked no later than August 23, 2011.  If you are a Class Member and do not timely submit a valid Proof of Claim, you will not be eligible to share in the Net Settlement Fund, but you nevertheless will be bound by the Final Order and Judgment of the Court.

DATED: JULY 14, 2011

BY ORDER OF THE COURT

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

SOURCE Strategic Claims Services

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