NEW YORK, June 26, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against China Mobile Games & Entertainment Group, Ltd. ("China Mobile Games" or the "Company") (Nasdaq:CMGE) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 14-cv-4745, is on behalf of a class consisting of all persons or entities who purchased CMGE's American Depository Shares ("ADS") between September 20, 2012 and June 19, 2014, inclusive (the "Class Period"), including those investors who purchased CMGE ADS pursuant to the CMGE's secondary public offering that closed on or about March 26, 2014. This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased China Mobile Games securities during the Class Period, you have until August 19, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
China Mobile Games, a Cayman Islands corporation headquartered in Guangzhou, China, is the largest publisher and developer of mobile games in China.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) CMGE was engaged in a bribery scheme within the Company's game publishing business; (ii) CMGE was engaged in undisclosed related party transactions; (iii) CMGE lacked adequate internal controls; and (iii) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On June 19, 2014, the price of CMGE shares fell $4.27 per share to $14.63, before being halted by the NASDAQ on news reports that CMGE had removed nine executives, including defendant Ying Shuling, CMGE's President, for alleged involvement in bribery.
Chinese internet news media reported that the misconduct also involved undisclosed related party transactions involving CMGE. These reports also indicated that in addition to Shuling, Vice President Sun Jingzhi, Vice President Du Xinxing, and General Managers Min Shuzhong and Wang Kun and Distribution Center Director Du Juan, Overseas Distribution Group Vice General Manager Luo Xiao, were among those terminated.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz LLP firstname.lastname@example.orgSource:Pomerantz LLP