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.More information about this investigation is available at: www.hbsslaw.com/ccme About Investor Fraud Practice Hagens Berman is a nationally recognized investor-rights law firm that provides highly acclaimed fraud recovery and asset protection services to individual and institutional investors who have been negatively affected by poor corporate governance, breach of fiduciary duties, misrepresentation of information, or a failure of good faith, fair dealing or loyalty. For an in-depth discussion of securities fraud, corporate governance and investor rights, please visit our Investor Fraud Website or our Meaningful Disclosure blog. About Hagens Berman Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and whistleblowers. More information about the firm is available at www.hbsslaw.com.
Hagens Berman Sobol Shapiro LLP, a nationwide, investor-rights law firm, notifies CCME investors that the “Class Period” for the China MediaExpress (NASDAQ: CCME) lawsuit, filed in the U.S. District court for the Southern District of New York, has expanded to May 14, 2010 to March 11, 2011 (the “Class Period”). The suit alleges that the Company misrepresented its operations and financial statements. Hagens Berman is conducting an investigation on behalf of CCME investors, and reminds investors who purchased common stock from China MediaExpress during the expanded Class Period that they have until April 5, 2011 to file as a lead plaintiff in a class-action lawsuit. Investors with losses over $50,000 who purchased CCME stock during the new Class Period are encouraged to contact Hagens Berman partner Reed R. Kathrein at 510-725-3000 for a personal consultation. Investors can also contact the Hagens Berman legal team through e-mail at CCME@hbsslaw.com. Investors must file within the next 14 days to serve as lead plaintiff in the case. 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. “Our investigation centers on 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, and we are interested to speak with witnesses who may have more information about these claims.” 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.