Focus Media Holding Limited (ADR) Investor Investigation Over Potential Violations Of Securities Laws

If you purchased shares of Focus Media Holding Limited (ADR) (NASDAQ: FMCN), and / or if you have any information relating the investigation including those who are former employees or/and whistleblowers, you may have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to, or call us at (858) 779-1554.
Company Name(s): 
Focus Media Holding
Affected Securities: 

San Diego, Nov. 23, 2011 (Shareholders Foundation) -- An investigation on behalf of investors in shares of Focus Media Holding Limited (ADR) (NASDAQ: FMCN) over possible Violations of Federal Securities Laws was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Focus Media Holding Ltd (ADR) (NASDAQ:FMCN) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements regarding Focus Media Holding Limited (ADR) (Public, NASDAQ:FMCN’s business, its prospects and its operations were potentially materially false and misleading at the time they were made.

Focus Media Holding Limited reported that its annual Revenue rose from $397.16million for 2009 to $516.31million in 2010 and that its Net Loss from 2009 of $101.64million turned into a Net Income of $101.20million in 2010. Focus Media Holding Limited also reported an increase in its third quarter Revenue from $137.35million last year to $210.66million this year. However, it reported that its third quarter Net Income fell from $112.74million last year to $62.23million this year.

Shares of Focus Media Holding Ltd (ADR) (NASDAQ FMCN) rose from as low as $5.80 in March ’09 to as high as $36.54 per share in May 2011.

Then 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.