NEW YORK, Jan. 5, 2012 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors who purchased American Depository Receipts of Focus Media Holding Limited ("Focus Media" or the "Company") between September 25, 2007 and November 21, 2011, inclusive (the "Class Period") alleging violations of the Securities and Exchange Act of 1934. Such investors are advised to contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888-476-6529, ext. 350.
The investigation concerns whether the Company misrepresented to investors its valuation of recent acquisitions. On November 21, 2011, Muddy Waters, LLC ("Muddy Waters") reported that Focus Media deliberately overpaid for acquisitions, writing down $1.1 billion out of $1.6 billion in acquisitions since 2005. Muddy Waters further disclosed that Focus Media had written down to zero at least 21 of its acquisitions, and that many of these write-downs were not justified but may have been given away to conceal losses from its outside auditors. On this news, Company share prices closed at $15.43 per share, a 40% drop from the prior day's closing price of $25.50.
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 www.pomerantzlaw.com.