China Century Dragon Media Inc (NYSE: CDM) Investor Securities Class Action Lawsuit 04/01/2011

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Company Name(s): 
China Century Dragon Media
Case Name: 
China Century Dragon Media Shareholder Class Action Lawsuit 04/01/2011
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: CDM
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/01/2011
Class Period Begin: 
02/07/2011
Class Period End: 
03/21/2011
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
05/31/2011
Date Settled: 
11/21/2013
Settlement Amount: 
$778,333
Deadline to Participate in Settlement: 
09/16/2013
Summary: 

June 23, 2014 - The court issued an order stating that in light of the partial judgment filed on November 12, 2013, the court orders this action closed.

November 21, 2013 - The court partially approved the settlement, entered the orders approving the plan of allocation and the motion for attorneys’ fees and expenses.

October 10, 2013 - The court approved the settlement and entered the order granting in part the motion for attorneys’ fees and expenses.

October 7, 2013 - The court held a final settlement hearing.

July 2, 2013 - The court preliminarily approved the settlement.

May 20, 2013 - Parties filed a stipulation of settlement.

January 6, 2012 - The lead plaintiff filed a second amended complaint.

November 30, 2011 - The defendants' motion to dismiss was granted with leave to amend the complaint.

September 16, 2011 - Defendants filed a motion to dismiss.

August 17, 2011 - The lead plaintiff filed an amended complaint on behalf of investors who purchased China Century Dragon Media Inc (NYSE: CDM) common shares between February 7, 2011 to March 21, 2011. The plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between February 7, 2011 to March 21, 2011.

July 18, 2011 - Lead plaintiff and lead counsel were appointed.

May 31, 2011 - Lead plaintiff motion was filed.

April 1, 2011 - An investor in shares of China Century Dragon Media Inc (NYSE: CDM now trading on the OTC sheets as CCDM) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by China Century Dragon Media Inc in connection with certain allegedly false and misleading statements made between February 8, 2011 to March 25, 2011.

According to the complaint the plaintiff alleges on behalf of investors who purchased the securities of China Century Dragon Media Inc (NYSE: CDM) from February 8, 2011 to March 25, 2011, that China Century Dragon Media Inc, certain of its officers and directors, and certain underwriters violated federal securities laws by issuing materially false and misleading information in China Century Dragon Media Inc's public offering documents.

While China Century Dragon Media Inc reported for the first three quarters in 2010 a combined nine months Total Revenue of $69.71million with a combined nine months Net Income of $7.35million.

On March 28, 2011 China Century Dragon Media Inc announced that its auditor MaloneBailey LLP had resigned and that MaloneBailey LLP had withdrawn its prior audit opinions of the Company's financial statements contained in the offering documents. China Century Dragon Media Inc said also that the staff of NYSE Amex LLC determined that China Century Dragon Media Inc is not in compliance with the listing standards of NYSE Amex LLC and is therefore subject to immediate delisting proceedings. China Century Dragon Media Inc said that MaloneBailey LLP informed China Century Dragon Media Inc 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." As a result, MaloneBailey LLP "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." The announcement also revealed that China Century Dragon Media Inc was subject to a formal investigation by the U.S. Securities and Exchange Commission (“SEC”) into whether "the Company had made material misstatements or omissions concerning its financial statements, including cash accounts and accounts receivable."

Since March 21, 2011 trading in China Century Dragon Media Inc’s stock has been halted.