Faruqi & Faruqi, LLP Announces Investigation of Focus Media Holding Limited
NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities firm, is investigating potential securities fraud at Focus Media Holding Limited (“Focus Media” or the “Company”) (Nasdaq: FMCN).
The investigation focuses on whether the Company and its executives violated federal securities laws by: (1) fraudulently exaggerating the number of screens in Focus Media’s LCD network by approximately 50%; (2) deliberately overpaying for the Company’s acquisitions in order to hide Company losses; (3) failing to disclose Focus Media’s extensive use of write-downs which may have been used to hide the true nature of Company’s acquisitions; and (4) engaging in massive insider trading.
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On November 21, 2011, Focus Media collapsed on a report by Muddy Waters, LLC. In the report, Muddy Waters accused Focus Media of “significant overstatement” of the number of screens currently in the Company’s LCD advertising network. Moreover, Muddy Waters alleged that Focus Media had engaged in numerous “Olympus-style acquisition overpayments.” Company directors were further accused of having engaged in massive insider selling since Focus Media’s 2005 IPO. This shocking news shattered Focus Media’s share price, causing it to fall from a close of $25.50 on the prior trading day to as low as $8.79 before ending the day at $15.43 – a 39% price drop.
Take Action
If you purchased Focus Media securities and you would like to discuss your legal rights, visit www.faruqilaw.com/FMCN
You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Focus Media’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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