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Nov. 7, 2011 /PRNewswire-Asia/ -- VisionChina Media Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN), one of
China's largest out-of-home digital television advertising networks on mass transportation systems, today announced rulings by the Supreme Court of the
State of New York,
New York County, concerning pending motions in two previously-announced lawsuits relating to VisionChina Media's
November 16, 2009 acquisition of Digital Media Group Company Limited ("Digital Media Group").
The first lawsuit was commenced by VisionChina Media and its wholly-owned subsidiary, Vision Best Limited ("Vision Best"), on
December 27, 2010 against Shareholder Representative Services, LLC, Gobi Partners, Inc., Gobi Fund, Inc., Gobi Fund II, L.P., Oak Investment Partners XII, L.P., Sierra Ventures IX, L.P., NIFSMBC-V2006S1 Investment Limited Partnership, NIFSMBC-V2006S3 Investment Limited Partnership,
Thomas Gai Tei Tsao and other as-yet unnamed defendants. The second lawsuit was commenced on
February 25, 2011 by Shareholder Representative Services, LLC, Oak Investment Partners XII, Limited Partnership, Gobi Partners, Inc., Gobi Fund, Inc. and Gobi Fund II, L.P. (collectively, the "Former Digital Media Group Shareholders") against VisionChina Media and Vision Best. Both suits were commenced in the Supreme Court of the
State of New York,
New York County.
In their complaint, VisionChina Media and Vision Best asserted claims for fraud and breach of contract, alleging that the defendants unlawfully induced VisionChina Media and Vision Best, through false, deceptive and misleading statements concerning Digital Media Group's financial condition and performance, to pay an inflated price to purchase Digital Media Group. Their complaint also alleged that VisionChina Media and Vision Best are owed indemnification from an escrow fund, which was established at the time of the acquisition, as a result of breaches of representations and warranties in the merger agreement. The Former Digital Media Group Shareholders alleged in their complaint that VisionChina Media and Vision Best breached certain contracts relating to the Company's acquisition of Digital Media Group by allegedly declining to make certain installment payments that the Former Digital Media Group Shareholders claimed they were entitled to receive and allegedly declining to take certain steps to facilitate the transfer of VisionChina Media stock that the Former Digital Media Group Shareholders are entitled to receive in connection with the acquisition. In their compliant, the Former Digital Media Group Shareholders are seeking specific enforcement of the contracts at issue, compensatory damages in an amount to be determined at trial, permanent and preliminary injunctive relief and such other relief as the court deems just and proper.