Rigrodsky & Long, P.A. Announces Investigation of Focus Media Holding Limited
WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A. announces that it has launched an investigation on behalf of the shareholders of Focus Media Holding Limited (“Focus Media” or the “Company”) (Nasdaq: FMCN), with respect to whether the Company and certain of its officers and directors have possibly violated the federal securities laws.
Click here to learn more: http://investigations.rigrodskylong.com/focus-media-holding-limited-fmcn/
Focus Media is a multi-platform digital media company and operates a liquid crystal display (LCD) network using audiovisual digital displays in China.
On November 21, 2011, analyst firm Muddy Waters, LLC (“Muddy Waters”) issued a report wherein it accused Focus Media of misrepresenting its financial statements and business prospects to the public. Muddy Waters asserted that the Company overstated the number of television screens in its ad network and may have overpaid for takeovers to mask losses. Specifically, Muddy Waters said Focus Media reported in regulatory filings that it has 178,382 screens, while according to its media kit the company has fewer than 120,000. Muddy Waters also wrote that the company has “significantly and deliberately” overpaid for deals and has written down $1.1 billion out of $1.6 billion in acquisitions since 2005, exceeding the Company’s enterprise value by a third.
This news caused Focus Media stock to plunge 65% on November 21, 2011 to a low of $8.79 per share and eventually closed almost 40% down at $15.43 per share that day, down from its previous day’s close of $25.50 per share.
If you are a Focus Media shareholder and purchased your shares between June 30, 2009 and November 20, 2011, if you have information or would like to learn more about our investigation, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Timothy J. MacFall, Esquire or Noah R. Wortman, Case Development Director, of Rigrodsky & Long, P.A., 919 N. Market Street, Suite 980, Wilmington, Delaware 19801, by telephone at (888) 969-4242, or by e-mail to info@rigrodskylong.com.
Rigrodsky & Long, P.A., with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
Attorney advertising. Prior results do not guarantee a similar outcome.