NEW YORK, June 26, 2015 (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 or entities who purchased AirMedia Group, Inc. (“AirMedia” or the “Company”) (Nasdaq:AMCN) securities between April 15, 2015 and June 15, 2015, inclusive (“Class Period”), alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
The Complaint alleges that Defendants made 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., and the valuation of the subsidiary negotiated in the deal. The Company’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 further alleges that Defendants made additional statements claiming that RMB3 billion/$500 million was a solid valuation of the AM Advertising subsidiary. As a result of these false and misleading statements, the Company’s securities traded at artificially inflated prices, reaching a high price of $7.70 in intraday trading on June 15, 2015.
On June 15, 2015, the Company 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. for RMB2.1 billion/$344.4 million, significantly less than the purported value the Company had claimed the subsidiary was worth during the Class Period. On this news, the price of the Company’s securities fell more than 50% over the next two days.
If you wish to serve as lead plaintiff, you must move the Court no later than August 24, 2015. 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