BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of AirMedia Group, Inc. (“AirMedia” or the “Company”) (NASDAQ: AMCN) concerning whether the Company misled investors regarding the value and potential sale of a portion of its advertising subsidiary AirMedia Group Co., Ltd. (AirMedia, Ltd.). The Law Offices of Howard G. Smith is preparing a complaint pursuant to the U.S. Securities Exchange Act to recover damages on behalf of AirMedia investors, and investors are encouraged to contact the firm to discuss the matter.
AirMedia is a leading operator of out-of-home advertising platforms that focuses on selling time slots on its network in the People’s Republic of China. Over the course of several months the Company misled investors into believing that a 5% portion of AirMedia, Ltd. would be sold to Shenzhen Liantronics Co. (“Liantronics”) at a total subsidiary valuation of $500 million. On April 28, 2015, a news report published on seekingalpha.com alleged that the Company was misleading investors regarding the sale of AirMedia, Ltd., that the subsidiary was overvalued by the Company, and a sale would likely not be closed. In response, the Company confirmed to investors that it would sell a 5% stake in AirMedia, Ltd. to Liantronics at a total valuation of $500 million. Then on June 15, 2015, AirMedia announced entry into a definitive agreement to sell 75 percent of AirMedia, Ltd. for $344 million to Beijing Longde Wenchuang Fund Mgmt. Co., Ltd., a quick reversal from its earlier announcement regarding a sale of 5% of the subsidiary at a $500 million valuation. When this news was revealed, shares of AirMedia fell $1.29 per share, or nearly 20%, to close on June 15, 2015 at $5.97 per share.
If you purchased AirMedia shares prior to June 15, 2015, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.