INVESTOR ALERT: Investigation of AirMedia Group, Inc. Announced by The Law Offices of Howard G. Smith
July 02 2015 - 10:46AM
Business Wire
Law Offices of Howard G. Smith announces that it is
investigating potential claims on behalf of investors of AirMedia
Group, Inc. (“AirMedia” or the “Company”) (NASDAQ: AMCN) concerning
whether the Company misled investors regarding the value and
potential sale of a portion of its advertising subsidiary AirMedia
Group Co., Ltd. (AirMedia, Ltd.). The Law Offices of Howard G.
Smith is preparing a complaint pursuant to the U.S. Securities
Exchange Act to recover damages on behalf of AirMedia investors,
and investors are encouraged to contact the firm to discuss the
matter.
AirMedia is a leading operator of out-of-home advertising
platforms that focuses on selling time slots on its network in the
People’s Republic of China. Over the course of several months the
Company misled investors into believing that a 5% portion of
AirMedia, Ltd. would be sold to Shenzhen Liantronics Co.
(“Liantronics”) at a total subsidiary valuation of $500 million. On
April 28, 2015, a news report published on seekingalpha.com alleged
that the Company was misleading investors regarding the sale of
AirMedia, Ltd., that the subsidiary was overvalued by the Company,
and a sale would likely not be closed. In response, the Company
confirmed to investors that it would sell a 5% stake in AirMedia,
Ltd. to Liantronics at a total valuation of $500 million. Then on
June 15, 2015, AirMedia announced entry into a definitive agreement
to sell 75 percent of AirMedia, Ltd. for $344 million to Beijing
Longde Wenchuang Fund Mgmt. Co., Ltd., a quick reversal from its
earlier announcement regarding a sale of 5% of the subsidiary at a
$500 million valuation. When this news was revealed, shares of
AirMedia fell $1.29 per share, or nearly 20%, to close on June 15,
2015 at $5.97 per share.
If you purchased AirMedia shares prior to June 15, 2015, have
information or would like to learn more about these claims, or have
any questions concerning this announcement or your rights or
interests with respect to these matters, please contact Howard G.
Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol
Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215)
638-4847, toll-free at (888) 638-4847, or by email to
howardsmith@howardsmithlaw.com, or visit our website at
http://www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: http://www.businesswire.com/news/home/20150702005548/en/
Law Offices of Howard G. SmithHoward G. Smith,
Esquire215-638-4847888-638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.com
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