BOCA RATON, Fla., March 18, 2011 (GLOBE NEWSWIRE) — Saxena White P.A. announces that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of investors who purchased China MediaExpress Holdings, Inc. (“China Media” or the “Company”) (Nasdaq:CCME) common stock between the period of May 14, 2010 through March 11, 2011, inclusive (the “Class Period”).
The Complaint alleges that China Media and certain of its officers and directors violated the federal securities laws by failing to disclose the following material information: (1) the Company misrepresented the number of buses in its advertising network; (2) the Company misrepresented the nature and extent of its business relationships; and (3) as such, the Company’s financial results were overstated at all relevant times.
On January 31, 2011, Citron Research published a report that stated that China Media misrepresented the scope of the Company’s operations, its financial performance, and the extent of the Company’s claimed strategic partnership with a government-affiliated entity. The Citron Research report concluded that the Company “does not exist at the scale that they are reporting to the investing public.” Then on February 3, 2011, the firm Muddy Waters disclosed that the Company “significantly inflated its revenue and earnings in order to pay management earn-outs and inflate the stock price so insiders can sell.” On this news, shares of China Media common stock fell .52 per share to close on February 3, 2011 at .09 per share, representing a drop of more than 33%.
After the close of trading on March 11, 2011, NASDAQ announced that it was halting trading due to the pending release of news. On March 14, 2011, the Company issued a release announcing the resignation of its independent outside auditor, Deloitte Touche Tohmatsu, the resignation of its Chief Financial Officer, Jacky Lam, and the delay of its earnings release and 10-K filing. Deloitte stated in its resignation letter that “it was no longer able to rely on the representations of management.” Analysts expect that an accounting restatement will be forthcoming after a detailed investigation is completed.
You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased the common stock of China Media between the period of May 14, 2010 through March 11, 2011, inclusive, you may contact Joe White or Greg Stone at Saxena White P.A. to discuss your rights and interests:
If you purchased China Media shares during the Class Period and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than April 5, 2011.�You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action.�Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., which has offices in Boca Raton, Boston and Montana, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals.�Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.
CONTACT: Saxena White P.A.
(561) 394-3399
http://bit.ly/ibM4NJ
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