According to a press release dated February 04, 2011, the complaint alleges that, throughout the Class Period, defendant failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendant’s statements were materially false and misleading because they misrepresented and overstated the financial condition of the Company.
On February 3, 2011, Muddy Waters Research initiated coverage on China MediaExpress with a strong sell rating on China MediaExpress stock. In its report, Muddy Waters questioned the accuracy of many of the Company’s statements and the quality of the Company’s earnings.
In response to the report, the price of China MediaExpress securities declined substantially, falling from $16.61 per share to $11.09 per share on extremely heavy trading volume.
On April 4, 2011, the Court ordered that two cases be consolidated under the lower number case, 11 Civ. 0804.
On April 15, 2011, Judge Victor Marrero directed the Clerk of Court to consolidate the three cases under a single consolidated action, 11 Civ. 0804.
According to the Order signed by Judge Victor Marrero on June 7, 2011, class members, Irrevocable Trust FBO Lansing Davis under agreement dated 10/1/1979 and the Davis Partnership LP (collectively the "Davis Entities"), are appointed to serve as Lead Plaintiffs. Class members, John and Jennifer Houghton, Ethan Lamar Pierce and Susan Shaffer (collectively the "CME Investor Group) are appointed as additional interim representative plaintiffs. The law firm Hagens Berman Sobol Shapiro LLP is appointed Lead Counsel for the Davis Entities in the action. The law firm Cohen Milstein Sellers & Toll PLLC is appointed interim co-counsel for the putative class in the action.
On October 25, 2011, lead plaintiffs filed an Amended and Consolidated Complaint, adding claims and individual defendants to the action.
On February 28, 2013, the Court issued an Order ruling on a number of Motions to Dismiss. The Court granted the Motions of certain defendants and denied the motions of others.
On January 17, 2014, a Default Judgment was entered against defendant China Media Express Holdings, Inc. in the amount of $ 535,500,000.
On August 15, 2014, the Court issued an Order granting the plaintiffs' Motion to Certify Class.
On May 5, 2015, the plaintiffs agreed to a Settlement with a certain defendant. This Settlement was preliminarily approved by the Court on May 7.