Khang & Khang LLP announces that a class action lawsuit has been filed on behalf of all persons or entities who purchased the common stock of SearchMedia Holdings Limited (formerly, Ideation Acquisition Corp.) (“SearchMedia” or “Ideation” or the “Company”) (NYSE AMEX: IDI) between April 1, 2009, and August 20, 2010, inclusive (the “Class Period”). The class action lawsuit was filed in the United States District Court for the Central District of California.
If you have any questions, would like to discuss this action, or would like a copy of the Complaint, please contact us by telephone at (310) 461-1342 or by email to Joon@Khanglaw.com.
Ideation was a blank-check company formed for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition or other similar business combination, one or more businesses. On April 1, 2009, the Company announced an agreement to purchase SearchMedia International Limited (“SMIL”), a purported nationwide multi-platform media company in China. On October 30, 2009, Ideation completed the acquisition of SMIL (the “Merger”) and changed its name to SearchMedia.
The Complaint relates to the joint proxy statement and prospectus (the “Proxy/Prospectus”) issued in connection with the Merger, and alleges that throughout the Class Period defendants misrepresented and/or failed to disclose: (1) that SMIL was improperly recognizing revenue; (2) that certain of SMIL’s accounts receivable related to sales generated primarily in the in-elevator business were uncollectible, (3) that, as a result, SMIL’s financial results were overstated; (4) that SMIL’s financial results were not prepared in accordance with Generally Accepted Accounting Principles; (5) that SMIL lacked adequate internal and financial controls; and (6), as a result of the above, SMIL’s financial statements were materially false and misleading at all relevant times.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 SearchMedia common stock between April 1, 2009, and August 20, 2010, you have certain rights, and have until November 15, 2010, 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 Joon M. Khang, Esquire, of Khang & Khang LLP, 1901 Avenue of the Stars, Suite 200, Los Angeles, California 90067, by telephone at (310) 461-1342 or by email to Joon@Khanglaw.com.