NEW YORK, July 3, 2015 /PRNewswire/ -- Pomerantz LLP
announces that a class action lawsuit has been filed against
AirMedia Group, Inc. ("AirMedia" or the "Company")(NASDAQ: AMCN)
and certain of its officers. The class action, filed in
United States District Court, Southern District of New York, is on behalf of a class consisting
of all persons or entities who purchased AirMedia securities
between April 15, 2015 and
June 15, 2015 inclusive (the "Class
Period"). This class action seeks to recover damages against
Defendants for alleged violations of the federal securities laws
under the Securities Exchange Act of 1934 (the "Exchange
Act").
If you are a shareholder who purchased AirMedia securities
during the Class Period, you have until August 24, 2015 to ask the Court to appoint you
as Lead Plaintiff for the class. A copy of the Complaint can be
obtained at www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, ext. 9980. Those who inquire by e-mail are encouraged to
include their mailing address, telephone number, and number of
shares purchased.
AirMedia operates out-of-home advertising platforms primarily in
the People's Republic of China.
The company operates a network of digital TV screens on planes
operated by seven airlines; traditional media in airports, such as
light boxes, billboards, and painted advertisements; and gas
station media displays, as well as other outdoor media displays out
of the air travel advertising sector.
The Complaint alleges that throughout 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., 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 further
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.
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.
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.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los
Angeles, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert
S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP