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 Mark@blockesq.com. Confidentiality to
whistleblowers or others with information relevant to the lawsuit
is assured.
This notice may constitute attorney advertising.
Contact: BLOCK & LEVITON LLP
Mark A. Delaney, Esq.
(617) 398-5600
Steven@blockesq.com
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SOURCE Block & Leviton LLP