Shareholders Foundation, Inc.

China Mobile Games & Entnmnt Grp Ltd (NASDAQ:CMGE) Investor Alert: Lawsuit Alleges Misleading Statements

A lawsuit was filed on behalf of investors in China Mobile Games & Entnmnt Grp Ltd (NASDAQ:CMGE) shares over alleged securities laws violations. Deadline: August 19, 2014.:CMGE investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 
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San Diego, CA -- (SBWIRE) -- 06/24/2014 -- An investor, who purchased shares of China Mobile Games & Entnmnt Grp Ltd (NASDAQ:CMGE), filed a lawsuit in the U.S. District Court for the District Court for the Southern District of New York over alleged violations of Federal Securities Laws by China Mobile Games & Entnmnt Grp Ltd in connection with certain allegedly false and misleading statements made between September 20, 2012 through June 19, 2014.

Investors who purchased a significant amount of shares China Mobile Games & Entnmnt Grp Ltd (NASDAQ:CMGE) between September 20, 2012 through June 19, 2014, including purchasers in China Mobile Games & Entnmnt Grp Ltd's public offering that closed on March 26, 2014, and / or those who purchased any NASDAQ:CMGE shares prior to September 2012, and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: August 19, 2014. NASDAQ:CMGE investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of purchasers of China Mobile Games & Entnmnt Grp Ltd (NASDAQ:CMGE) common shares between September 20, 2012 through June 19, 2014, including purchasers in China Mobile Games & Entnmnt Grp Ltd's public offering that closed on March 26, 2014, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that defendants made allegedly false and misleading statements and/or failed to disclose that China Mobile Games & Entnmnt Grp Ltd was engaged in a bribery scheme within the China Mobile Games & Entnmnt Grp Ltd's game publishing business, that China Mobile Games & Entnmnt Grp Ltd was engaged in undisclosed related party transactions, and that China Mobile Games & Entnmnt Grp Ltd lacked internal controls.

China Mobile Games & Entnmnt Grp Ltd reported that its annual Total Revenue rose from $187.59 million in 2012 to $353.01 million in 2013 and that its Net Loss of $14.34 million in 2012 turned into a Net income of $26.26 million in 2013. Shares of China Mobile Games & Entnmnt Grp Ltd (NASDAQ:CMGE) grew from $3.45 per share in February 2013 to as high as $38.86 per share in Feburary 2014.

Then on June 19, 2014, a media report stated that nine senior executives at China Mobile Games & Entnmnt Grp Ltd, including its president, were suspended due to alleged involvement in a bribery scheme within its game publishing business.

Shares of China Mobile Games & Entnmnt Grp Ltd (NASDAQ:CMGE) dropped from $18.93 per share on June 18, 2014, to as low as $12.60 per share on June 20, 2014.

On June 20, 2014, NASDAQ:CMGE shares closed at $14.33 per share.

Those who purchased shares of China Mobile Games & Entertainment Group Ltd (NASDAQ:CMGE) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com