HARTFORD, Conn., May 23, 2007 LAWFUEL – The Law News Wire — The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the American Depositary Shares (“ADSs”) of Xinhua Finance Media Ltd. (“Xinhua” or the
“Company”) (Nasdaq:XFML) pursuant or traceable to Xinhua’s initial public offering, dated March 8, 2007 (the “IPO”). Also included are all persons who purchased or acquired ADSs of Xinhua between March 8, 2007 and May 21, 2007, inclusive (the “Class Period”).
The Complaint alleges that Xinhua and certain of its officers and directors violated Federal Securities laws by issuing false and misleading statements in the Company’s March 8, 2007 prospectus (the “Prospectus”), issued in connection with the offering of 23,076,932 ADSs, representing 46,153,846 common shares at $13 per share.
Specifically, it is alleged that the Prospectus failed to disclose material information that the Company’s CFO at the time of the IPO, Shelly Singhal, was simultaneously an investment banker and stockbroker in charge of Bedrock Securities (“Bedrock”). Since April 2006, prior to the Company’s IPO, Bedrock had been under a NASDAQ cease-and-desist order for violating SEC regulations. Moreover, reports also surfaced that Singhal had been fighting a private civil racketeering lawsuit in California and had previously been a major investor in AremisSoft and ACLN, companies previously sued for fraud by the SEC.
If you are a member of the class, you may, no later than July 23, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard, P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard, P.C. toll-free at
(800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website:
www.snilaw.com.
