LOS ANGELES, June 29, 2007 LAWFUEL – The Lawsuit Newswire — Notice is hereby given
that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in
the United States District Court for the Southern District of New York
on behalf of a class (the “Class”) consisting of purchasers of American
Depository Shares (“ADS” or “shares”) of Xinhua Finance Media Ltd.
(“Xinhua” or the “Company”) (Nasdaq:XFML), who purchased or otherwise
acquired Xinhua shares pursuant or traceable to the Company’s March 8,
2007 Initial Public Offering (the “IPO”) through May 21, 2007,
inclusive (the “Class Period”).
A copy of the Complaint is available from the court or from Glancy
Binkow & Goldberg LLP. Please contact us by phone to discuss this
action or to obtain a copy of the Complaint at (310) 201-9150 or Toll
Free at (888) 773-9224, by email at [email protected], or visit our
website at www.glancylaw.com.
The Complaint charges Xinhua and certain of the Company’s executive
officers with violations of, among other things, Sections 11 and 15 of
the Securities Act of 1933. Plaintiff claims that defendants’ material
omissions and dissemination of materially false and misleading
statements concerning the Company’s operations and management caused
Xinhua’s stock price to become artificially inflated, inflicting
damages on investors. Xinhua operates as a diversified media company in
the Peoples Republic of China. The company operates in five divisions:
Media Production, Broadcasting, Print, Advertising, and Research. The
Complaint alleges that defendants failed to disclose or indicate at the
time of the Company’s IPO that: (1) Company Chief Financial Officer
Shelly Singhal’s company, Bedrock Securities, was accused by the NASD
of violating U.S. securities regulations; (2) the Company’s CFO had
received a cease-and-desist order from the NASD; (3) the Company had
failed to adequately conduct a due diligence investigation prior to its
IPO; (4) the Company lacked adequate internal and financial controls;
and (5) as a result of the foregoing, the Company’s financial
statements were materially false and misleading at all relevant times.
On May 19, 2007, an article published in Barrons revealed that the
Company had failed to disclose that its CFO had received a
cease-and-desist letter from the NASD, and was accused of other
improper behavior relating to securities violations. Additionally, it
was revealed that a broker-dealer firm that the CFO owned had been
accused by the NASD of violating United States securities regulations.
As a result of this news, the Company’s shares fell 11.8 percent, or
$1.18 per share, to close on May 21, 2007 at $8.76 per share, on
unusually heavy trading volume.
Then, on May 21, 2007, the Company issued a statement concerning its
IPO, assuring investors that it fully complied with “all disclosure and
due diligence processes required in the United States.” Investors,
however, reacted negatively, and in response the Company’s shares fell
an additional 18.9 percent, or $1.66 per share, to close on May 22,
2007 at $7.10 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of Class members and is
represented by Glancy Binkow & Goldberg LLP, a law firm with
significant experience in prosecuting class actions, and substantial
expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the
Court, not later than July 23, 2007, to serve as lead plaintiff,
however, you must meet certain legal requirements. If you wish to
discuss this action or have any questions concerning this Notice or
your rights or interests with respect to these matters, please contact
Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue
of the Stars, Suite 311, Los Angeles, California 90067, by telephone at
(310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to