Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against AirMedia Group Inc.
Jun 25, 2015, 10:00 ET
NEW YORK, June 25, 2015 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/airmedia/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of AirMedia Group Inc. ("AirMedia") (NASDAQ:AMCN) American Depositary Receipts ("ADRs") during the period between April 15, 2015 and June 15, 2015 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/airmedia/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges AirMedia and certain of its officers and directors with violations of the Securities Exchange Act of 1934. AirMedia operates out-of-home advertising platforms primarily in the People's Republic of China, including a network of digital TV screens on airplanes; traditional media in airports, such as light boxes, billboards, and painted advertisements; and gas station media displays, as well as other outdoor media displays outside of the air-travel advertising sector.
The complaint alleges that during the Class Period, defendants made false and misleading statements regarding the purported sale of a 5% interest in AirMedia's advertising subsidiary, AirMedia Group Co., Ltd. ("AM Advertising"), to Shenzhen Liantronics Co. Ltd. ("Liantronics"), and the valuation of the subsidiary negotiated in the deal. AirMedia's press release announcing the sale stated that the deal "reflected the total valuation of AM Advertising of RMB3 billion," or $500 million. The complaint alleges that defendants made additional statements during the Class Period claiming that RMB3 billion/$500 million was a solid valuation of the AM Advertising subsidiary. As a result of defendants' false and misleading statements during the Class Period, AirMedia ADRs traded at artificially inflated prices, reaching a high price of $7.70 per ADR in intraday trading on June 15, 2015.
Later on June 15, 2015, the Company issued a press release announcing that it had entered into a definitive agreement to sell a 75% equity interest in AM Advertising to Beijing Longde Wenchuang Fund Management Co., Ltd. ("Longde") for RMB2.1 billion/$344.4 million, significantly less than the purported value the Company had claimed the subsidiary was worth during the Class Period. On this news, the price of AirMedia ADRs fell more than 50% over the next two days.
Plaintiff seeks to recover damages on behalf of all purchasers of AirMedia ADRs during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com/cases/airmedia/ for more information.
Contact:
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
[email protected]
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SOURCE Robbins Geller Rudman & Dowd LLP