Focus Media Holding Limited (ADS) (NASDAQ: FMCN) Investor Securities Class Action Lawsuit 12/13/2011

If you purchased American Depositary Shares (ADS) of Focus Media Holding Limited (NASDAQ: FMCN), you might have certain options and should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Focus Media Holding
Case Name: 
Focus Media Holding Shareholder Class Action Lawsuit 12/13/2011
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
Date Settled: 
Settlement Amount: 
Deadline to Participate in Settlement: 

September 4, 2014 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

May 23, 2014 - The court preliminarily approved the settlement.

May 13, 2014 - Parties filed a stipulation of settlement.

April 11, 2014 - The defendants filed a motion to dismiss.

March 12, 2014 - The lead plaintiff filed an amended complaint.

December 12, 2011 - An investor in American Depositary Shares (ADS) of Focus Media Holding Limited (NASDAQ: FMCN) filed a lawsuit in the U.S. District Court for the Southern District of New York against Focus Media Holding Limited over alleged Violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired ADS of Focus Media Holding Limited (NASDAQ: FMCN) between September 25, 2007 and November 21, 2011, that Focus Media Holding Limited and certain of its officers and directors violated the Securities Exchange Act of 1934.

On November 21, 2011, Muddy Waters, LLC issued a report wherein it accused Focus Media Holding Limited of misrepresenting its financial statements and business prospects to the public.

Among other things, the report alleges that Focus Media Holding Limited overstated the number of television screens in its ad network and may have overpaid for takeovers to mask losses. Specifically, Muddy Waters LLC said Focus Media Holding Limited reported in regulatory filings that it has 178,382 screens, while according to its media kit Focus Media Holding Limited has fewer than 120,000. According to the report Focus Media Holding Limited has also allegedly "significantly and deliberately" overpaid for deals and has written down $1.1 billion out of $1.6 billion in acquisitions since 2005, exceeding Focus Media Holding's enterprise value by a third.

NASDAQ: FMCN fell from $28.35 during November 18, 2011 to as low as $9.57 per share on Monday, Nov. 21, 2011.

On November 22, 2011, Focus Media Holding Limited responded to the allegations raised in a research report by Muddy Waters. Focus Media Holding Limited said it denies the allegations entirely and that the allegations set forth in the Muddy Waters report concern matters which have long been disclosed in Focus Media Holding's historical annual reports and press releases, misrepresent the information they present and attribute motives to management that are based on innuendo and fail to take into account business and commercial considerations relevant to the matters discussed in the Muddy Waters report.

FMCN stocks closed on Tuesday, November 22, 2011 at $17.70 per share.