China Mobile Games & Entertainment Group LTD (ADS) (NASDAQ: CMGE) Investor Securities Class Action Lawsuit 06/20/2014

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Company Name(s): 
China Mobile Games & Entnmnt Grp
Case Name: 
China Mobile Games & Entnmnt Grp Shareholder Class Action Lawsuit 06/20/2014
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: CMGE
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
06/20/2014
Class Period Begin: 
04/26/2013
Class Period End: 
01/14/2015
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
08/19/2014
Case Dismissed: 
03/07/2016
Date Settled: 
05/25/2017
Settlement Amount: 
$1,500,000
Deadline to Participate in Settlement: 
10/21/2017
Summary: 

May 25, 2017 - The court preliminarily approved the settlement.

May 22, 2017 - Parties filed a stipulation of settlement

September 2, 2016 - Defendants filed a motion to dismiss.

July 18, 2016 - The lead plaintiff filed a second amended consolidated complaint.

March 7, 2016 - The court granted defendants' motion to dismiss with leave to amend.

March 19, 2015 - Defendants filed a motion to dismiss.

February 2, 2015 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased American Depositary Shares (ADS) of China Mobile Games & Entertainment Group LTD (NASDAQ: CMGE) between April 26, 2013 and January 14, 2015. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between April 26, 2013 and January 14, 2015.

November 20, 2014 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

August 19, 2014 - Lead plaintiff motions were filed.

July 10, 2014 - The plaintiff filed a notice of voluntary dismissal, voluntarily dismissing the action without prejudice against the a particular defendant.

June 23, 2014 - An investor in American Depositary Shares (ADS) of China Mobile Games & Entertainment Group LTD (NASDAQ: CMGE) filed a lawsuit in the U.S. District Court for the District Court for the Southern District of New York against China Mobile Games & Entertainment Group LTD over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between September 20, 2012 through June 19, 2014.

According to the complaint the plaintiff alleges on behalf of purchasers of China Mobile Games & Entertainment Group LTD (NASDAQ: CMGE) common shares between September 20, 2012 through June 19, 2014, including purchasers in China Mobile Games & Entertainment Group LTD's public offering that closed on March 26, 2014, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that defendants made allegedly false and misleading statements and/or failed to disclose that China Mobile Games & Entertainment Group LTD was engaged in a bribery scheme within the China Mobile Games & Entertainment Group LTD's game publishing business, that China Mobile Games & Entertainment Group LTD was engaged in undisclosed related party transactions, and that China Mobile Games & Entertainment Group LTD lacked internal controls.

China Mobile Games & Entertainment Group LTD reported that its annual Total Revenue rose from $187.59 million in 2012 to $353.01 million in 2013 and that its Net Loss of $14.34 million in 2012 turned into a Net income of $26.26 million in 2013. Shares of China Mobile Games & Entertainment Group LTD (NASDAQ: CMGE) grew from $3.45 per share in February 2013 to as high as $38.86 per share in Feburary 2014.

Then on June 19, 2014, a media report stated that nine senior executives at China Mobile Games & Entertainment Group LTD, including its president, were suspended due to alleged involvement in a bribery scheme within its game publishing business.

Shares of China Mobile Games & Entertainment Group LTD (NASDAQ: CMGE) dropped from $18.93 per share on June 18, 2014, to as low as $12.60 per share on June 20, 2014.

On June 20, 2014, China Mobile Games & Entertainment Group LTD (NASDAQ: CMGE) shares closed at $14.33 per share.