Case Page

 

Case Status:    DISMISSED    
On or around 03/27/2017 (Date of order of final judgment)

Filing Date: June 25, 2015

According to the law firm press release, AirMedia operates out-of-home advertising platforms primarily in the People’s Republic of China, including a network of digital TV screens on airplanes; traditional media in airports, such as light boxes, billboards, and painted advertisements; and gas station media displays, as well as other outdoor media displays outside of the air-travel advertising sector.

The complaint alleges that during the Class Period, 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. (“Liantronics”), and the valuation of the subsidiary negotiated in the deal. AirMedia’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 alleges that defendants made additional statements during the Class Period claiming that RMB3 billion/$500 million was a solid valuation of the AM Advertising subsidiary. As a result of defendants’ false and misleading statements during the Class Period, AirMedia ADRs traded at artificially inflated prices, reaching a high price of $7.70 per ADR in intraday trading on June 15, 2015.

Later 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. (“Longde”) 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 AirMedia ADRs fell more than 50% over the next two days.

On March 27, 2017, the Court issued an Order granting Defendants' Motion to Dismiss with prejudice.

COMPANY INFORMATION:

Sector: Services
Industry: Advertising
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: AMCN
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 15-CV-04966
JUDGE: Hon. Andrew L. Carter, Jr
DATE FILED: 06/25/2015
CLASS PERIOD START: 04/15/2015
CLASS PERIOD END: 06/15/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Holzer & Holzer, LLC
    1117 Perimeter Center West, Suite E-107, Holzer & Holzer, LLC, GA 30338
    770.392.0090 770.392-0029 · mfistel@holzerlaw.com
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 15-CV-04966
JUDGE: Hon. Andrew L. Carter, Jr
DATE FILED: 01/15/2016
CLASS PERIOD START: 04/07/2015
CLASS PERIOD END: 06/15/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Holzer & Holzer, LLC
    1117 Perimeter Center West, Suite E-107, Holzer & Holzer, LLC, GA 30338
    770.392.0090 770.392-0029 · mfistel@holzerlaw.com
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date