Hagens Berman Sobol Shapiro LLP, a nationwide, investor-rights law firm, reminds investors of the April 5, 2011, deadline to file as a lead plaintiff in a class-action lawsuit against China MediaExpress (NASDAQ:CCME). The suit has been filed in the U.S. District Court for the Southern District of New York and alleges that The Company misrepresented its operations and financial state.
On March 14, 2011, CCME announced that its independent auditor, Deloitte Touche Tohmatsu (DTT), and its Chief Financial Officer, Jacky Lam, had resigned. According to CCME, the auditor stated that it was “no longer able to rely on the representations of management.” CCME announced that it will delay its fourth-quarter earnings release.
Investors with losses over $50,000 who purchased CCME stock between Nov. 8, 2010, and Feb. 3, 2011 (the “Class Period”), are encouraged to contact Hagens Berman partner Reed R. Kathrein at 510-725-3000 before April 5, 2011, for a personal consultation. Investors can also contact the Hagens Berman legal team through e-mail at CCME@hbsslaw.com. Investors must file by April 5, 2011, to serve as lead plaintiff in the case.
“We are investigating the extent to which DTT conducted a complete audit of CCME,” Mr. Kathrein said. “DTT’s role is extremely important given allegations that the company made false and misleading statements to investors.”China MediaExpress purports to own the largest television advertising network on buses throughout 18 of China’s regions, including Beijing. According to the complaint, The Company claims to sell advertisements on more than 27,000 buses. However, the complaint alleges that CCME made false and misleading statements, including misrepresentations about its revenues, the number of buses in its network and the nature of its business relationships. On February 3, 2011, analyst firm Muddy Waters released a report alleging that CCME had exaggerated the scope of its operations as part of a “pump and dump” scheme to inflate revenues for management, who would sell the stock. The report claimed that CCME owns fewer than half of the buses it claims to own and that many of the buses' screens do not play advertising content. China MediaExpress shares fell 33 percent on February 3, closing at $11.09 per share.