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If you purchased China MediaExpress Holdings Inc (Public, NASDAQ:CCME) securities between March 31, 2009 and January 31, 2011, and/or if you have any information relating the investigation, including those who are former employees and/or whistleblowers, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
After CCME stocks lost 33% within one day an investigation for investors in shares of China MediaExpress Holdings Inc (NASDAQ:CCME) over possible violations of federal securities laws by China MediaExpress Holdings Inc was announced.
The investigation by a law firm concerns whether China MediaExpress Holdings, Inc and certain of its officers and directors potentially violated the Securities Exchange Act of 1934 by issuing certain statements between March 31, 2009 and January 31, 2011, regarding China MediaExpress Holdinings business, operations, and prospects were possible materially false and misleading. China MediaExpress Holdings, through contractual arrangements with Fujian Fenzhong Media Co., Ltd. , operates the television advertising network on inter-city express buses in China.
Shares of China MediaExpress Holdings Inc (NASDAQ: CCME) rose from as low as under $9 per share in July 2010 to almost $23 per share in the end of January 2011.
But on January 31, 2011, analyst firm Citron Research issued a report alleging that China Media Express misrepresented its financial performance, business prospects, and financial condition to investors. The Citron Research report concluded that China MediaExpress Holdings does not exist at the scale that they are reporting to the investing public. Then on Thursday February 3, 2011, shares of China MediaExpress Holdings Inc (NASDAQ: CCME) sank 33% percent after analyst firm Muddy Waters issued a research report, echoing Citron Research's allegations of fraud. Bothreports assert that China MediaExpress Holdings revenues were substantially overstated and that China MediaExpress Holdings exaggerated the extent of its business operations. The company had rebutted those claims in a statement on Tuesday.
China MediaExpress Holdings reported $25.84million 12 months Total Revenue in 2007, $63milllion in 2008 and $95.93million in 2009. Its Net Income went over the same time period from $6.97million, $26.37million, $41.71million. For the first three quarters in 2010 China MediaExpress Holdings Inc reported a combined nine months Total Revenue of $154.99million thus succeeding its 12mnths Total Revenue in 2009. China MediaExpress Holdings also succeed with a combined nine months Net Income of $77.77mmilion for the first three quarters in 2010 its 12months Net Income of 2009.
