SAN FRANCISCO, July 07, 2015 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, advises investors of the August 24, 2015 lead plaintiff deadline in the securities fraud class action lawsuit filed against AirMedia Group, Inc. (NASDAQ:AMCN) (“AirMedia” or “the Company”). If you have losses in your purchases of AirMedia American Depository Receipts (“ADRs”) during the Class Period contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000, emailing AMCN@hbsslaw.com or visiting http://hb-securities.com/investigations/AMCN.
The lawsuit, pending in U.S. District Court for the Southern District of New York, is filed on behalf of investors who purchased AirMedia ADRs between April 15, 2015 and June 15, 2015, inclusive, (the “Class Period”). Although no class has been certified in this case, the deadline to move for the position of lead plaintiff in the case is August 24, 2015. You do not need to move for lead plaintiff to be a member of the Class or to participate in any recovery.
AirMedia operates public space advertising platforms in the People’s Republic of China. On April 7, 2015 the Company’s ADRs traded below $2 per ADR, valuing the Company at approximately $100 million. The lawsuit alleges that during 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”). AirMedia’s announcement of the sale on April 7, 2015, coupled with additional statements made by Defendants led investors to believe that the advertising subsidiary was valued at $500 million. As a result of these statements, the Complaint alleges that the Company’s ADRs traded at artificially inflated prices, reaching a high of $7.70 on June 15, 2015.
Also 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 a different buyer for $344.4 million, significantly less than the purported value the Company had claimed the subsidiary was worth during the Class Period. On this news, the price of AirMedia ADRs fell more than 50% over the next two days.
If you were negatively impacted by your investment in AirMedia ADRs between April 15, 2015 and June 15, 2015, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation.
Whistleblowers: Persons with non-public information regarding AirMedia should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at (510) 725-3000 or email AMCN@hbsslaw.com.
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