SearchMedia Holdings Limited Under Long Term Investor Investigation

If you are a current long term investor in SearchMedia Holdings Limited (AMEX:IDI), formerly Ideation Acquisition Corp common stock, including those who purchased also prior to April 2009 and presently continue to hold those shares, you 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 mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
SearchMedia
Affected Securities: 
AMEX: IDI

A lawsuit on behalf of investors SearchMedia Holdings formerly Ideation Acquisition Corp who purchased IDI shares during the period between April 1, 2009 and August 20, 2010, alleging securities laws violations by SearchMedia Holdings Limited . was filed in July. Meanwhile an investigation on behalf of current long term investors SearchMedia Holdings Limited (AMEX:IDI), formerly Ideation Acquisition Corp, including those who purchased also prior to April 2009 and presently continue to hold those IDI shares, over possible breaches of fiduciary duty was announced.

According to the complaint the plaintiff alleges on behalf of those who purchased IDI common stock during the period between April 1, 2009 and August 20, 2010 that SearchMedia violated the Securities Exchange Act of 1934. On October 30, 2009, Ideation Acquisition Corp completed the acquisition of SearchMedia International Limited (a purported nationwide multi-platform media company in China) and changed its name to SearchMedia. Specifically, the complaint alleges that SearchMedia Holdings Limited issued material misstatements and/or omissions in the joint proxy statement and prospectus dated October 5, 2009, and other public statements between April 1, 2009 and August 20, 2010 related to the acquisition of SearchMedia International Limited by Ideation Acquisition Corp and SearchMedia International Limited.

The investigation by a law firm on behalf of current SearchMedia Holdings Limited (AMEX:IDI), formerly Ideation Acquisition Corp. long term investors, including those who purchased also prior to April 2009 and presently continue to hold those IDI shares, focuses on potential breaches of fiduciary duty by certain officers and directors of SearchMedia Holdings Limited in connection with the alleged securities laws violations.

On August 20, 2010, SearchMedia Holdings Limited announced that the historical financial statements of SearchMedia International Limited for the 2007 and 2008 fiscal years would have to be restated and that the financial statements from these periods should no longer be relied upon. SearchMedia Holdings Limited also indicated that it estimated that revenue in 2007 and 2008 had been overstated by approximately $6 million and $25 million, respectively. Upon this news, so the lawsuit, Holdings Limited’s stock fell nearly 23%, to close on August 20, 2010, at $2.62 per share. Over the next few days, SearchMedia's stock continued to decline and closed at $1.70 per share on August 23, 2010, a 50% decline from the closing price of $3.40 per share on August 19, 2010. SearchMedia Holdings Limited shares (IDI) traded recently at $2.20 per share, down from its 52weekHigh of $8.71 per share.