NEW YORK, July 25, 2014 /PRNewswire/ -- Pomerantz LLP has
filed a class action lawsuit against China Mobile Games &
Entertainment Group, Ltd. ("China Mobile Games" or the
"Company")(NASDAQ: CMGE) and certain of its officers. The
class action, filed in United States District Court, Southern
District of New York, and docketed
under 14-cv-4745, is on behalf of a class consisting of all persons
or entities who purchased CMGE's American Depository Shares ("ADS")
between September 20, 2012 and
June 19, 2014, inclusive (the "Class
Period"), including those investors who purchased CMGE ADS pursuant
to the CMGE's secondary public offering that closed on or about
March 26, 2014. This
class action seeks to recover damages against Defendants for
alleged violations of the federal securities laws under the
Securities Act of 1933 (the "Securities Act") and the Securities
Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased China Mobile Games
securities during the Class Period, you have until August 19, 2014 to ask the Court to appoint you
as Lead Plaintiff for the class. A copy of the Complaint can
be obtained at www.pomerantzlaw.com. To discuss this action,
contact Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
China Mobile Games, a Cayman
Islands corporation headquartered in Guangzhou, China, is the largest publisher and
developer of mobile games in China.
The Complaint alleges that throughout the Class Period,
Defendants made false and/or misleading statements, and failed to
disclose material adverse facts about the Company's business,
operations, prospects and performance. Specifically, during
the Class Period, defendants made false and/or misleading
statements and/or failed to disclose that: (i) CMGE was
engaged in a bribery scheme within the Company's game publishing
business; (ii) CMGE was engaged in undisclosed related party
transactions; (iii) CMGE lacked adequate internal controls; and
(iii) as a result of the above, the Company's financial statements
were materially false and misleading at all relevant times.
On June 19, 2014, the price of
CMGE shares fell $4.27 per share to
$14.63, before being halted by the
NASDAQ on news reports that CMGE had removed nine executives,
including defendant Ying Shuling, CMGE's President, for alleged
involvement in bribery.
Chinese internet news media reported that the misconduct also
involved undisclosed related party transactions involving CMGE.
These reports also indicated that in addition to Shuling, Vice
President Sun Jingzhi, Vice President Du Xinxing, and General
Managers Min Shuzhong and Wang Kun
and Distribution Center Director Du
Juan, Overseas Distribution Group Vice General Manager Luo
Xiao, were among those terminated.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
SOURCE Pomerantz LLP