Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against Xinhua Finance Media Ltd.
June 04 2007 - 4:00PM
Business Wire
Lerach Coughlin Stoia Geller Rudman & Robbins LLP (�Lerach
Coughlin�) (http://www.lerachlaw.com/cases/xinhua/) today announced
that a class action has been commenced in the United States
District Court for the Southern District of New York on behalf of
all persons or entities who acquired Xinhua Finance Media Ltd.
(�Xinhua�) (NASDAQ:XFML) American Depositary Shares (�ADSs�)
pursuant to the Company�s false and misleading Registration
Statement and Prospectus (collectively, the �Registration
Statement�) issued in connection with its March 8, 2007 initial
public offering (�IPO�). If you wish to serve as lead plaintiff,
you must move the Court no later than 60 days from May 22, 2007. If
you wish to discuss this action or have any questions concerning
this notice or your rights or interests, please contact plaintiff�s
counsel, Samuel H. Rudman or Darren J. Robbins of Lerach Coughlin
at 800/449-4900 or 619/231-1058, or via e-mail at
wsl@lerachlaw.com. If you are a member of this class, you can view
a copy of the complaint as filed or join this class action online
at http://www.lerachlaw.com/cases/xinhua/. Any member of the
purported class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member. The complaint charges Xinhua and
certain of its officers and directors with violations of the
Securities Act of 1933. Xinhua is a diversified media company in
China. The complaint alleges that on March 9, 2007, Xinhua
accomplished its IPO of 23.07 million ADSs, representing 46.15
million common shares, at $13.00 per ADS (including 1.5 million
shares sold by Xinhua�s Chairman and Chief Executive Officer, Fredy
Bush) for net proceeds of $300 million, pursuant to the
Registration Statement. Due to defendants� positive but false
statements following the IPO, by May 15, 2007, the stock was
trading around $12.00 per share. Then on May 21, 2007, Barron�s
published an article on Xinhua disclosing that the Registration
Statement for the IPO failed to disclose that Xinhua�s Chief
Financial Officer (�CFO�) was simultaneously the Company�s CFO and
an investment banker and stockbroker who ran a securities firm that
had been under regulatory scrutiny in the past year. On this news,
Xinhua�s stock price collapsed from $10.79 per share on May 17,
2007 to close at $8.76 per share on May 21, 2007, on unusually high
volume. Plaintiff seeks to recover damages on behalf of all persons
or entities who acquired Xinhua ADSs pursuant to the Company�s
false and misleading Registration Statement issued in connection
with its March 8, 2007 IPO. The plaintiff is represented by Lerach
Coughlin, which has expertise in prosecuting investor class actions
and extensive experience in actions involving financial fraud.
Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Houston, Philadelphia and Seattle, is active in major litigations
pending in federal and state courts throughout the United States
and has taken a leading role in many important actions on behalf of
defrauded investors, consumers, and companies, as well as victims
of human rights violations. Lerach Coughlin lawyers have been
responsible for more than $20 billion in aggregate recoveries. The
Lerach Coughlin Web site (http://www.lerachlaw.com) has more
information about the firm.
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