XFML Xinhua Finance Media Limited ADS (MM)

RADNOR, Pa., June 12 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all American Depository Share ("ADS") purchasers of Xinhua Finance Media Ltd. (NASDAQ:XFML) ("Xinhua" or the "Company") pursuant or traceable to the Company's March 9, 2007 Initial Public Offering ("IPO") through May 21, 2007 (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The Complaint charges Xinhua and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Xinhua operates as a diversified media company in the Peoples Republic of China consisting of five divisions: Media Production, Broadcasting, Print, Advertising, and Research. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's CFO, Shelly Singhal's company, Bedrock Securities, was accused by the NASD of violating U.S. securities regulations; (2) that the Company's CFO had received a cease-and-desist order from the NASD; (3) that the Company had failed to adequately conduct a due diligence investigation prior to its IPO; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times. On March 8, 2007, the Company conducted its IPO and offered over 23 million ADS to the public and raised over $225 million in gross proceeds. On May 19, 2007, Barrons revealed that the Company had failed to disclose that its Chief Financial Officer ("CFO") had received a cease-and-desist letter from the NASD, and was accused of other improper behavior relating to securities violations. Additionally, it was revealed that a broker-dealer firm that the CFO owned had been accused by the NASD of violating US securities regulations. On this news, the Company's shares fell 11.8 percent, or $1.18 per share, to close on May 21, 2007 at $8.76 per share, on unusually heavy trading volume. Then on May 21, 2007, the Company issued a statement about its IPO in an attempt to assure investors that it fully complied with "all disclosure and due diligence processes required in the United States." However, investors saw through this veiled statement, and in response, the Company's shares fell an additional 18.9 percent, or $1.66 per share, to close on May 22, 2007 at $7.10 per share, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/ . If you are a member of the class described above, you may, not later than July 23, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin Barroway Topaz & Kessler or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin Barroway Topaz & Kessler, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq., +1-888-299-7706, or +1-610-667-7706, or , both of Schiffrin Barroway Topaz & Kessler, LLP Web site: http://www.sbtklaw.com/

Copyright