NEW YORK, Feb. 10, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit against China MediaExpress Holdings, Inc. ("CCME" or the "Company") (NYSE:CCME) and certain of its officers. The class action (Civil Action No.: 11-cv-0833) pending in the Southern District of New York is on behalf of a class of all persons or entities who purchased or otherwise acquired CCME securities during the period from November 8, 2010 through and including February 3, 2011, (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased CCME securities during the Class Period and would like to serve as lead plaintiff for the class, you have until April 5, 2011 to ask the Court to appoint you. A copy of the complaint can be obtained at . To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Claims
China MediaExpress provides television advertising networks on inter-city express buses in China. The Complaint alleges that, throughout the Class Period, defendant's public statements were materially false and misleading because they misrepresented and overstated the financial condition of the Company. Specifically, the Complaint alleges: (1) that the Company misrepresented the number of buses in its advertising network; (2) that the Company misrepresented the nature and extent of its business relationships; (3) that, as a result, the Company's financial results were overstated during the Class Period; and (4), as a result of the above, that the Company's statements concerning CCME's business, operations, and prospects were materially false and misleading at all relevant times.
On January 31, 2011, analyst firm Citron Research published a report alleging that CCME has misrepresented, among other things, the scope of the Company's operations, its financial performance, and the extent of the Company's claimed strategic partnership with a government-affiliated entity. The Citron Research report concluded that the Company "does not exist at the scale that they are reporting to the investing public."
On this news, shares of CCME declined $3.02 per share, more than 14%, to close on January 31, 2011, at $17.84 per share.
Three days later, on February 3, 2011, analyst firm Muddy Waters issued a detailed report echoing many of the allegations in the Citron Research report. Among other things, Muddy Waters alleged that CCME "is engaging in a massive 'pump and dump' scheme...significantly inflating its revenue and earnings in order to pay management earn-outs and inflate the stock price so insiders can sell." Following this news, CCME shares declined $5.52 per share, or 33.23%, to close on February 3, 2011, at $11.09 per share on unusually heavy volume of more than 21.6 million shares traded.
The Pomerantz Firm
The Pomerantz Firm, with offices in New York, Chicago and Washington, D.C., 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 .
CONTACT: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP 888-476-6529 (ext. 237) rrboyle@pomlaw.com