August 07, 2012 (Shareholders Foundation) -- An investigation on behalf of investors of Digital River, Inc. (NASDAQ:DRIV) shares over potential securities laws violations by Digital River, Inc. and certain of its directors and in connection with certain statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Digital River, Inc. (NASDAQ:DRIV) concerning whether a series of statements by Digital River, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Digital River, Inc. (NASDAQ:DRIV) reported that its annual Revenue rose from $363.23million in 2010 to $398.14million in 2011 and its Net Income increased from $15.73million in 2010 to $17.17million in 2011.

On July 31, 2012, after the market closed, Digital River, Inc. (NASDAQ:DRIV) reported its second quarter 2012 financial results and issued its guidance for its third quarter and Full year 2012.

Shares of Digital River, Inc. (NASDAQ:DRIV) dropped from $17.78 per share on July 31, 2012, to as low as $13.00 per share on August 1, 2012.

On August 3, 2012, NASDAQ:DRIV shares closed at $14.44 per share, significantly below its current 52 week High of $25.90 per share.