NEW YORK, July 06, 2015 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of a class of investors who purchased American Depositary Receipts (ADR’s) of AirMedia Group, Inc. (“AirMedia” or the “Company”) (NASDAQ:AMCN) between April 15, 2015 and June 15, 2015, inclusive (the “Class Period”). Wolf Haldenstein encourages all shareholders who suffered losses on ADR's purchased within the Class Period to contact us immediately at classmember@whafh.com or (800) 575-0735.
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 ADR's 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.
As a result of this disclosure, the price of AirMedia ADR’s fell more than 50% over the subsequent days.
If you purchased AirMedia securities during the Class Period, you may, no later than August 24, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com. All e-mail correspondence should make reference to the “AirMedia Investigation.”
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