Dan Marino Reportedly Lost $13 Million Dollars in Digital Domain Stock Blessed by Jim Cramer

Virtual 2Pac maker Digital Domain Media Group, Inc. (NYSE: DDMG) filed for Chapter 11 bankruptcy protection and Outten & Golden filed suit against “DDMG, Inc., et al., seeking to recover 60 days wages and benefits for former employees under the Worker Adjustment and Retraining Notification (“WARN”) Act. The firm claims “DDMG ordered mass layoffs on or about September 7, 2012 at its Port St. Lucie, Florida facility without providing its employees with advance written notice.”

Besides the mass layoffs, many investors have been wiped out. One investor? HOF quarterback Dan Marino. Marino bought 1,576,525 shares in the company. At one point they were valued at over $14MM. Now, at least depending on what the paper itself winds up worth -- they're valued at $850k.

Fumble.

...in addition -- "lender attorney David M. Hillman offered to remove the deadlines from the part of the loan that would be used to temporarily pay employee salaries. That would free up about $4 million that Digital Domain could use to meet its current payroll, company attorney Robert J. Feinstein said."

Twice in the past 5 months Jim Cramer's Mad Money TV Program pumped the stock. Thursday April 26: "Animation is very big. I think it works." And then again as recently as June 20th: "I am going to say that is okay. They are an animation player and they have pretty good technology, but it is not a blue chip. For young investors, I would bless it."

And who was a guest on CNBC on April 18, 2012? John Textor, Digital Domain Media chairman & CEO, discussing whether a Tupac 'hologram' will go on tour. "There's certainly been a lot of talk on that; that's entirely up to Dr. Dre," he told CNBC's Fast Money traders.

Not so much.



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