LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP announces that all purchasers of the American Depositary Receipts (“ADRs”) of Focus Media Holding Ltd. (“Focus Media” or the “Company”) (NASDAQ:FMCN) between September 25, 2007 and November 21, 2011, inclusive (the “Class Period”) have until February 17, 2012 to file a motion with the Court to be appointed as Lead Plaintiff. The securities fraud class action lawsuit was filed in the United States District Court for the Southern District of New York.
Focus Media is a multi-platform digital media company that operates a liquid crystal display (LCD) network using audiovisual digital displays in China. The Complaint alleges that during the Class Period the Company reported that it had engaged in several acquisitions, including that of Framedia, Target Media, Focus Media Wireless, Allyes, CGEN and other smaller acquisitions. As alleged more fully in the Complaint, in a research report dated November 21, 2011 Muddy Waters, LLC (“Muddy Waters”) reported that Focus Media deliberately overpaid for these acquisitions, writing down $1.1 billion out of $1.6 billion – equivalent to one-third of the Company’s present enterprise value – since 2005. Muddy Waters disclosed that by November 2011, Focus Media had written down to zero at least 21 of its acquisitions and then given them away for no consideration. Muddy Waters further reported that many of these write-downs were not justified, and that possibly the Company gave away these acquisitions to conceal losses from its outside auditors. In addition, Muddy Waters disclosed that certain Focus Media insiders had used the Company as their counterparty in trading in and out of Allyes, earning a total of at least $70.1 million, while the Company’s shareholders ultimately lost $159.6 million. The Complaint alleges that defendants deliberately overpaid for these acquisitions, all but ensuring Focus Media would incur costs in excess of its projected costs for these transactions.
Any person or group who suffered a loss as a result of purchasing Focus Media ADRs between September 25, 2007 and November 21, 2011, may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than February 13, 2012. To be a member of the class you need not take action at this time; you may retain counsel of your choice or take no action and remain an absent class member. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at 310-201-9150, Toll Free at 888-773-9224, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
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