LOS ANGELES, March 21, 2011 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP -- representing shareholders of China MediaExpress Holdings, Inc. -- announces that the Class Period has been expanded in the shareholder lawsuit filed in the United States District Court for the Southern District of New York. All persons or entities who purchased or otherwise acquired the securities of China MediaExpress Holdings, Inc. ("China MediaExpress" or the "Company") (Nasdaq:CCME) between May 14, 2010 and March 11, 2011, inclusive (the "Class Period"), may move the Court not later than April 5, 2011 to serve as lead plaintiff; however, you must meet certain legal requirements.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201‑9150 or Toll Free at (888) 773‑9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
China MediaExpress purports to operate the largest television advertising network on inter-city and airport express buses in China. The Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company misrepresented the number of buses in its advertising network; (ii) the Company misrepresented the nature and extent of its business relationships; (iii) the Company's financial results were overstated during the Class Period; and (iv), as a result of the above, the Company's statements concerning China MediaExpress' business, operations and prospects were materially false and misleading at all relevant times.
On January 31, 2011, analyst firm Citron Research published a report alleging that China MediaExpress has misrepresented, among other things, the scope of its operations, its financial performance, and that the Company "does not exist at the scale that they are reporting to the investing public." On February 3, 2011, analyst firm Muddy Waters issued a report echoing many of the allegations in the Citron report. On this news, China MediaExpress shares declined 33.23%, to close on February 3, 2011, at $11.09 per share on unusually heavy volume.
On Friday, March 11, 2011, trading in China MediaExpress shares was halted on the Nasdaq pending further information. The following Monday, March 14, the Company announced the resignation of its independent auditor -- Deloitte Touche Tohmatsu -- and the resignation of the Company's chief financial officer, effective immediately. Consequently, the Company will delay its fourth quarter earnings release and the filing of its Form 10-K annual report for the fiscal year ended December 31, 2010. The announcement further stated that Deloitte Touche Tohmatsu's resignation letter stated it was "no longer able to rely on the representations of management, and recommended that certain issues encountered during the audit be addressed by an independent investigation," that "these issues may have adverse implications for the prior periods' financial reports" and, in the auditor's view, "further investigatory procedures would be required to determine whether the prior periods' financial reports are reliable."
If you are a member of the class described above, you may move the Court, no later than April 5, 2011, to serve as lead plaintiff; however, you must meet certain legal requirements. 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 or Toll Free at (888) 773-9224, by e-mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com..