China Century Dragon Media, Inc.
Class Period: Feb 8, 2011 to Mar 25, 2011
Lead Plaintiff Deadline: May 31, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against China Century Dragon Media, Inc. (CDM) (China Century) on behalf of all persons who purchased the securities of China Century from February 8,2011 through March 26, 2011. This case has been filed in the USDC - California (Central).
The Complaint alleges as follows: On March 28, 2011 China Century Dragon Media, Inc. ("China Century" or the "Company") issued an announcement revealing that its auditor MaloneBailey LLP ("MB") had resigned and that MB had withdrawn its prior audit opinions of the Company's financial statements contained in the offering documents. MB informed the Company that "due to discrepancies noted on customer confirmations and the auditor's inability to directly verify the Company's bank records, they believe these irregularities may be an indication that the accounting records have been falsified, which would constitute an illegal act." As a result, MB "is unable to rely on management's representations as they relate to previously issued financial statements and it can no longer support its opinions related to the financial statements as of December 31, 2009 and 2008." The announcement also revealed that the China Century was subject to a formal investigation by the SEC into whether "the Company had made material misstatements or omissions concerning its financial statements, including cash accounts and accounts receivable."
Since March 21, 2011 trading in the Company's stock has been halted, rendering the Company's stock illiquid and damaging investors.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.