BOSTON, April 29, 2015 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations by AirMedia Group Inc. ("AirMedia" or the "Company") (NASDAQ: AMCN) following the publication of an article on the investor website Seeking Alpha alleging that the Company's share value was artificially inflated due to misleading information disseminated regarding a recent investment made in the Company.
Specifically, AirMedia announced on April 7, 2015 that it had sold a 5% equity interest in the Company to Shenzhen Liantronics Co., Ltd ("Liantronics"), a company listed on the Shenzhen Stock Exchange, for approximately $25 million. The Company's share price soared by more than 100% in the days after announcement.
On April 28, 2015, AirMedia was the subject of an article on Seeking Alpha written by activist investor Richard Pearson entitled "AirMedia Doubles On Misleading Investment Transaction." According to the article, Pearson had obtained a copy of the previously undisclosed contract between AirMedia and Liantronics and, based on his analysis of the contract, concluded that "the deal is very unlikely to go through due to unrealistic clauses which are entirely unachievable. These clauses were deliberately included to protect Liantronics." Pearson further alleges that the sole reason for the announcement was an artificial "investment ploy" designed to "spike" the stock's value.
In reaction to this news, AirMedia's stock price has dropped by approximately 10% in less than a single day of trading.
Block & Leviton's investigation seeks to determine, among other things, whether AirMedia or its officers and directors violated the federal securities laws through the misleading investment announcement. If you purchased AirMedia securities between April 7, 2015 and April 28, 2015, and have questions about your legal rights or possess information relevant to this investigation, please contact attorney Mark A. Delaney of Block & Leviton LLP at (617) 398-5600 or email him at [email protected]. Confidentiality to whistleblowers or others with information relevant to the lawsuit is assured.
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Contact: BLOCK & LEVITON LLP
Mark A. Delaney, Esq.
SOURCE Block & Leviton LLP