12.  Subsequent Event

Alleged Securities Violation

On May 2, 2013, a purported securities class action complaint was filed in the U.S. District Court for the Northern District of Texas, entitled Anastacia Shaffer v. Digital Generation, Inc., et al., No. 3:13-cv-1684, alleging civil violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder.  The complaint names as defendants the Company and certain of its current and former officers.  The purported class period is alleged to be June 20, 2011 through February 19, 2013.

We believe the outcome of this case is not likely to have a material adverse effect on our operating results and we intend to defend it vigorously. We believe the purported claims and our defense costs will qualify under our insurance coverage, less the applicable deductible.