Lieff, Cabraser, Heimann & Bernstein, LLP Announces Class Action Lawsuit Against China Century Dragon Media, Inc. (CDM)
April 15 2011 - 7:00AM
Business Wire
The law firm of Lieff, Cabraser, Heimann & Bernstein, LLP
announces that a class action lawsuit has been brought on behalf of
all persons which purchased or otherwise acquired the securities of
China Century Dragon Media, Inc. (“China Century” or the “Company”)
(AMEX: CDM) between February 8, 2011 and March 25, 2011, inclusive
(the “Class Period”), including all persons who purchased China
Century common stock pursuant and/or traceable to the Company’s
initial public offering on or around February 8, 2011 (the
“IPO”).
If you purchased China Century securities during the Class
Period and/or pursuant or traceable to the IPO, you may move the
Court for appointment as lead plaintiff by no later than May 31,
2011. A lead plaintiff is a representative party who acts on behalf
of other class members in directing the litigation. Your share of
any recovery in the action will not be affected by your decision of
whether to seek appointment as lead plaintiff. You may retain Lieff
Cabraser, or other attorneys, as your counsel in the actions.
China Century shareholders who wish to learn more about the
action and how to seek appointment as lead plaintiff may visit
Lieff Cabraser’s website at http://www.lieffcabraser.com/securities-investor-fraud/case/458/china-century-dragon-media-inc-securities-class-litigation or
contact Sharon M. Lee of Lieff Cabraser toll free at (800)
541-7358.
Background on China Century Securities
Class Litigation
The action, pending in the United States District Court for the
Central District of California, is brought against China Century,
certain of its officers and directors, and the underwriters of the
IPO for violations of the Securities Act of 1933 and the Securities
Exchange Act of 1934. China Century, headquartered in Huizhou City,
Guangdong in the People’s Republic of China, is a television
advertising company that primarily offers blocks of advertising
time on certain channels on CCTV, China’s state television
broadcaster and largest television network.
The action alleges that during the Class Period, defendants
misrepresented and omitted material information regarding China
Century’s financial condition. Specifically, defendants failed to
disclose that China Century engaged in illegal and improper
accounting practices and, as a result, its financial statements
issued during the Class Period were materially false and
misleading.
On March 22, 2011, China Century issued a press release
announcing that it had received a preliminary information request
from NYSE Amex LLC (“NYSE Amex”) on March 21, 2011.
On March 28, 2011, China Century issued another press release
disclosing the resignation of its independent auditor,
MaloneBailey, LLP (“MB”), on March 22, 2011. According to the press
release, “MB informed the Company that due to discrepancies noted
on customer confirmations and the auditor’s inability to directly
verify the Company’s bank records, they believe these
irregularities may be an indication that the accounting records
have been falsified, which would constitute an illegal act.” In
addition, MB reportedly informed the Company that “the
discrepancies could indicate a material error in previously issued
financial statements” and, therefore, “it is unable to rely on
management’s representations as they relate to previously issued
financial statements and it can no longer support its opinions
related to the financial statements as of December 31, 2009 and
2008.” China Century also disclosed that it had been notified by
the NYSE Amex on March 23, 2011 that it was not in compliance with
listing standards and that it was subject to immediate delisting.
The Company also revealed that the Securities and Exchange
Commission (“SEC”) had launched an investigation into potential
material misstatements or omissions by the Company concerning its
financial statements, including cash accounts and accounts
receivable, and that the SEC had served the Company a subpoena for
documents.
About Lieff Cabraser
Lieff, Cabraser, Heimann & Bernstein, LLP, with offices in
San Francisco, New York and Nashville, is a nationally recognized
law firm committed to advancing the rights of investors and
promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser
as one of the top plaintiffs’ law firms in the nation. In compiling
the list, the National Law Journal examined recent verdicts and
settlements in addition to overall track records. Lieff Cabraser is
one of only two plaintiffs’ law firms in the United States to
receive this honor for the last eight consecutive years.
For more information about Lieff Cabraser and the firm’s
representation of investors, please visit
http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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