NEW YORK, June 23, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the securities of China Mobile Games and Entertainment Group ("China Mobile" or the "Company") (Nasdaq:CMGE) during the period between September 20, 2012 through June 19, 2014, including purchasers in China Mobile's public offering that closed on March 26, 2014.
The Complaint alleges that Defendants and underwriters failed to disclose and/or materially misstated China Mobile's true financial condition. Specifically, the Complaint alleges that Defendants made false and misleading statements and/or failed to disclose that (i) China Mobile was engaged in a bribery scheme within the Company's game publishing business; (ii) China Mobile was engaged in undisclosed related party transactions, and (iii) China Mobile lacked internal controls. The Complaint alleges that on June 19, 2014, the price of China Mobile shares fell $4.27 a share before being halted by the NASDAQ on reports that China Mobile had removed nine executives, including the Company's President in connection with the alleged bribery. Chinese internet news media reported that the misconduct also involved undisclosed related party transactions with China Mobile.
If you wish to serve as lead plaintiff, you must move the Court no later than August 19, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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Source:Gainey McKenna& Egleston