Bernstein Liebhard today announced that a lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of a class (the “Class”) of investors who purchased China MediaExpress Holdings, Inc. (“China MediaExpress” or the “Company”) (NASDAQ: CCME) securities between the period of November 8, 2010 through February 3, 2011, inclusive (the “Class Period”).
Plaintiffs allege China MediaExpress violated the Securities Exchange Act of 1934. China MediaExpress provides television advertising network on inter-city express buses in China. Plaintiffs allege, throughout the Class Period, that defendant failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, Plaintiffs allege that defendant’s statements were materially false and misleading because they misrepresented and overstated the financial condition of the Company.
On February 3, 2011, Muddy Waters Research initiated coverage on China MediaExpress with a strong sell rating on China MediaExpress stock. In its report, Muddy Waters questioned the accuracy of many of the Company’s statements and the quality of the Company’s earnings.
In response to the report, the price of China MediaExpress securities declined substantially, falling from $16.61 per share to $11.09 per share on extremely heavy trading volume.
Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired shares of China MediaExpress during the Class Period. If you purchased or otherwise acquired China MediaExpress shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than April 5, 2011.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.