A lawsuit was filed on behalf of investors in AirMedia Group Inc (ADR) (NASDAQ:AMCN) shares over alleged securities laws violations and NASDAQ:AMCN investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/22/2015 -- The Shareholders Foundation announces that an investor in NASDAQ:AMCN shares filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by AirMedia Group Inc (in connection with certain allegedly false and misleading statements.
Investors who purchased shares of AirMedia Group Inc (ADR) (NASDAQ:AMCN) have certain options and for certain investors are short and strict deadlines running. Deadline: August 24, 2015. NASDAQ:AMCN investors should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of AirMedia Group Inc (ADR) (NASDAQ:AMCN) common shares between April 15, 2015 and June 15, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that defendants made allegedly false and misleading statements regarding the purported sale of a 5% interest in AirMedia's advertising subsidiary, AirMedia Group Co., Ltd. ("AM Advertising"), to Shenzhen Liantronics Co. Ltd. ("Liantronics"), and the valuation of the subsidiary negotiated in the deal. AirMedia's press release announcing the sale stated that the deal "reflected the total valuation of AM Advertising of RMB3 billion," or $500 million. The complaint alleges that defendants made additional statements between April 15, 2015 and June 15, 2015 claiming that RMB3 billion/$500 million was a solid valuation of the AM Advertising subsidiary and that as a result of defendants' statements between April 15, 2015 and June 15, 2015, between April 15, 2015 and June 15, 2015 ADRs traded at allegedly artificially inflated prices, reaching a high price of $7.70 per ADR in intraday trading on June 15, 2015.
On April 24, 2015, a report was published on AirMedia Group Inc, which asserts that the touted investment by Shenzhen Liantronics into AirMedia Group Inc was a sham transaction.
Shares of AirMedia Group Inc (ADR) (NASDAQ:AMCN) declined on April 28, 2015, to $4.18 per share.
Later on June 15, 2015, AirMedia Group Inc issued a press release announcing that it had entered into a definitive agreement to sell a 75% equity interest in AM Advertising to Beijing Longde Wenchuang Fund Management Co., Ltd. ("Longde") for RMB2.1 billion/$344.4 million.
Shares of AirMedia Group Inc (ADR) (NASDAQ:AMCN) declined from$7.70 per share on June 15, 2015, to as low as $3.51 per share on June 18, 2015.
Those who purchased shares of AirMedia Group Inc (ADR) (NASDAQ:AMCN) have certain options and should contact the Shareholders Foundation.
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