RADNOR, Pa., Dec. 21 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of securities of Focus Media ("Focus Media" or the "Company") between September 27, 2007 and November 19, 2007, including those who bought shares in the Company's November 7, 2007 Secondary Public Offering ("SPO" or "Offering") (the "Class Period").
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 Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The Complaint charges Focus Media and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Focus Media operates an out-of-home advertising network in the People's Republic of China using audiovisual television displays, based on the number of locations and number of flat-panel television displays in its network. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had made numerous acquisitions in its Internet Advertising Business segment; (2) that these acquisitions had significantly reduced gross margins in the Company's Internet Advertising Business segment; and (3) that these acquisitions had substantially increased the Company's operating expenses.
On November 19, 2007, after the close of the market, Focus Media shocked investors when it announced its third quarter 2007 financial and operational results. Therein, the Company disclosed that it had consolidated several newly acquired entities during the quarter, which significantly impacted gross margins in the Company's Internet Advertising Business segment, and substantially increased the Company's operating expenses. On this news, the Company's shares declined $5.15 per share, or over 9 percent, to close on November 20, 2007 at $52.00 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/
If you are a member of the class described above, you may, not later than January 28, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at
