A current long term investor in shares of China Century Dragon Media, Inc. (NYSE:CDM) filed a lawsuit against certain directors of China Century Dragon Media, Inc over alleged breaches of fiduciary duties.
The lawsuit by a current investor against certain directors of China Century Dragon Media, Inc. follows an earlier lawsuit against China Century Dragon Media, Inc on behalf of investors who purchased their CDM stock between February 8, 2011 and March 26, 2011 over alleged violations of Federal Securities Laws.
According to that complaint the plaintiff alleges that China Century Dragon Media, Inc. issued between February 8, 2011 and March 26, 2011 materially false and misleading information in China Century Dragon Media's public offering documents.
Then on March 28, 2011 China Century Dragon Media, Inc. announced that its auditor MaloneBailey LLP had resigned and that MaloneBailey LLP had withdrawn its prior audit opinions of the Company's financial statements contained in the offering documents.
China Century Dragon Media, Inc said also that the staff of NYSE Amex LLC determined that China Century Dragon Media is not in compliance with the listing standards of NYSE Amex LLC and is therefore subject to immediate delisting proceedings.
The announcement also revealed that China Century Dragon Media, Inc. was subject to a formal investigation by the U.S. Securities and Exchange Commission (“SEC”) into whether the Company had made material misstatements or omissions concerning its financial statements, including cash accounts and accounts receivable.
Since March 21, 2011 trading in China Century Dragon Media’s stock has been halted.
On Friday, June 17, 2011, the NYSE Amex LLC announced that it had denied China Century Dragon Media’s request for continued listing and said it would suspend China Century Dragon Media’s listing on the exchange.