BENSALEM, Pa., March 17, 2011 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith, representing investors of China MediaExpress Holdings, Inc., announces an April 5, 2011 deadline to move to be a lead plaintiff in the class action lawsuit filed on behalf of all purchasers of the securities of China MediaExpress Holdings, Inc. ("China MediaExpress" or the "Company") (Nasdaq:CCME) between November 8, 2010 and February 3, 2011, inclusive (the "Class Period"). The shareholder lawsuit is pending in the United States District Court for the Southern District of New York.
China MediaExpress purports to operate the largest television advertising network on inter-city and airport express buses in China. The Complaint alleges that defendants misrepresented and/or failed to disclose that: (1) the Company misrepresented the number of buses in its advertising network; (2) the Company misrepresented the nature and extent of its business relationships; (3) as a result, the Company's financial results were overstated during the Class Period; and (4) as a result of the above, the Company's statements concerning China MediaExpress' 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, among other things, that the Company "does not exist at the scale that they are reporting to the investing public," and on February 3, 2011, analyst firm Muddy Waters issued a report echoing many of the allegations in the Citron report.
On March 11, 2011 trading in China MediaExpress shares was halted on the Nasdaq pending further information. On March 14, 2011 the Company announced the resignation of its independent accounting firm, Deloitte Touche Tohmatsu, the resignation of the Company's chief financial officer, and that the Company will delay its fourth quarter earnings release and the filing of its Form 10-K annual report for the fiscal year ended December 31, 2010. The announcement disclosed that Deloitte Touche Tohmatsu's resignation letter stated it was "no longer able to rely on the representations of management," recommended that certain issues encountered during the audit be addressed by an independent investigation, and that "these issues may have adverse implications for the prior periods' financial reports."
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased China MediaExpress securities between November 8, 2010 and February 3, 2011, you have certain rights and have until April 5, 2011, to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice 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, by email to howardsmith@howardsmithlaw.com or visit our website at .
CONTACT: Law Offices of Howard G. Smith Howard G. Smith, Esquire (215) 638-4847 (888) 638-4847 howardsmith@howardsmithlaw.com www.howardsmithlaw.com