China Media Express Holdings, Inc. (OTC: CCME)
Hagens Berman is representing investors in a class-action lawsuit against China MediaExpress (NASDAQ: CCME). The suit has been filed in the United States District Court for the Southern District of New York and alleges that the company misrepresented its operations and financial state.
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, 2011, closing at $11.09 per share.
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.”
The case seeks to represent a class of investors who purchased CCME stock between May 14, 2010, and March 11, 2011 (the “Class Period”).
Hagens Berman purchases advertisements on search engines, social media sites and other websites. Transmission of the information contained or available through this website is not intended to create, and receipt does not constitute, an attorney-client relationship. If you seek legal advice or representation by Hagens Berman, you must first enter a formal agreement. All information contained in any transmission is confidential and Hagens Berman agrees to protect information against unauthorized use, publication or disclosure. This site is regulated by the Washington Rules of Professional Conduct.