Digital Domain lawsuit: Mark St. Cyr suing Digital Domain Media Group as part of a class action suit

Mark St. Cyr is suing Digital Domain Media Group as part of a class action lawsuit claiming the company misled investors.

The lawsuit filed Thursday lists several Digital Domain executives, including former CEO John Textor as defendants. Roth Capital Partners and Morgan Joseph TriArtisan, the managing underwriters of Digital Domain's initial public offering also are listed as defendants.

The suit is filed in the U.S. District Court Southern District of Florida.

"While the company faced a substantial 'burn rate' which threatened the (Digital Domain Media Group's) ability to continue to as a going concern, the (company's) senior officers falsely reassured shareholders that it would be able to meet its operating expenses," the suit states.

The suit was filed by the law firm of Berman DeValerio. Through a spokesperson, Digital Domain declined comment.

Digital Domain filed for bankruptcy on Sept. 11 after the company laid off 346 employees from its Port St. Lucie animation studio. The company had launched its public stock offering in November.

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