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 djr@rgrdlaw.com. 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
djr@rgrdlaw.com
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SOURCE Robbins Geller Rudman & Dowd LLP