LOS ANGELES, June 29, 2007 (PRIME NEWSWIRE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of purchasers of American Depository Shares ("ADS" or "shares") of Xinhua Finance Media Ltd. ("Xinhua" or the "Company") (Nasdaq:XFML), who purchased or otherwise acquired Xinhua shares pursuant or traceable to the Company's March 8, 2007 Initial Public Offering (the "IPO") through May 21, 2007, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Xinhua and certain of the Company's executive officers with violations of, among other things, Sections 11 and 15 of the Securities Act of 1933. Plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning the Company's operations and management caused Xinhua's stock price to become artificially inflated, inflicting damages on investors. Xinhua operates as a diversified media company in the Peoples Republic of China. The company operates in five divisions: Media Production, Broadcasting, Print, Advertising, and Research. The Complaint alleges that defendants failed to disclose or indicate at the time of the Company's IPO that: (1) Company Chief Financial Officer Shelly Singhal's company, Bedrock Securities, was accused by the NASD of violating U.S. securities regulations; (2) the Company's CFO had received a cease-and-desist order from the NASD; (3) the Company had failed to adequately conduct a due diligence investigation prior to its IPO; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On May 19, 2007, an article published in Barrons revealed that the Company had failed to disclose that its CFO had received a cease-and-desist letter from the NASD, and was accused of other improper behavior relating to securities violations. Additionally, it was revealed that a broker-dealer firm that the CFO owned had been accused by the NASD of violating United States securities regulations. As a result of this news, the Company's shares fell 11.8 percent, or $1.18 per share, to close on May 21, 2007 at $8.76 per share, on unusually heavy trading volume.
Then, on May 21, 2007, the Company issued a statement concerning its IPO, assuring investors that it fully complied with "all disclosure and due diligence processes required in the United States." Investors, however, reacted negatively, and in response the Company's shares fell an additional 18.9 percent, or $1.66 per share, to close on May 22, 2007 at $7.10 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than July 23, 2007, to serve as lead plaintiff, however, you must meet certain legal requirements. 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 Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.