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Focus Media Holding, Ltd. Summary: According to a law firm press release dated November 26, 2007, a class action has been commenced on behalf of purchasers of the American Depositary Shares of Focus Media Holding Limited in the Company’s secondary public offering on or about November 7, 2007.
The complaint charges Focus Media and certain of its officers and directors with violations of the Exchange Act of 1933. Focus Media operates out-of-home advertising network using audiovisual television displays in the People’s Republic of China.
According to the complaint, on or about November 1, 2007, Focus Media filed a Form F-1/A Registration Statement with the Securities and Exchange Commission for the Secondary Offering. On or about November 6, 2007, the Prospectus with respect to the Secondary Offering, which forms part of the Registration Statement, became effective and more than 13.5 million shares of Focus Media’s ADSs at $64.75 per ADS were sold to the public, thereby raising more than $888 million.
The complaint alleges that the Registration Statement and the Prospectus contained inaccurate statements of material fact because they failed to disclose that the Company had made numerous acquisitions in its Internet advertising business division which were depressing its gross margins in that important division. On November 19, 2007, after the close of the market, Focus Media issued a press release announcing its financial results for the third quarter of 2007, the period ending September 30, 2007. Among other things, the Company reported that its gross margins for the third quarter of 2007 had declined due to several recent acquisitions. Following the Company’s earnings release, on November 20, 2007, the price of Focus Media ADSs dropped from $57.15 per ADS to $52.00 per ADS on extremely heavy trading volume.
INDUSTRY CLASSIFICATION:
SIC Code: 7311
Sector: Services
Industry: Advertising
| COMPANY/ISSUER NAME: | Focus Media Holding, Ltd. |
| COMPANY/ISSUER TICKER: | FMCN |
| COMPANY WEBSITE: | http://www.focusmedia.com.cn/ |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Eastriver Partners, Inc., et al. v. Focus Media Holding, Ltd., et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint For Violations Of Federal Securities Laws | |||
| Type: Complaint | Date on the document: 11/27/2007 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: Scott Bauer, et al. v. Focus Media Holding, Ltd., et al. | |||
| Type: Complaint | Date on the document: 12/21/2007 | ||
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