Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against Xinhua Finance Media Ltd.

  
    
  
  
    
      Lerach Coughlin Stoia Geller Rudman & Robbins LLP (“Lerach 
      Coughlin”) (http://www.lerachlaw.com/cases/xinhua/) 
      today announced that a class action has been commenced in the United 
      States District Court for the Southern District of New York on behalf of 
      all persons or entities who acquired Xinhua Finance Media Ltd. (“Xinhua”) 
      (NASDAQ:XFML) American Depositary Shares (“ADSs”) 
      pursuant to the Company’s false and misleading 
      Registration Statement and Prospectus (collectively, the “Registration 
      Statement”) issued in connection with its 
      March 8, 2007 initial public offering (“IPO”).
    
    
      If you wish to serve as lead plaintiff, you must move the Court no later 
      than 60 days from May 22, 2007. If you wish to discuss this action or 
      have any questions concerning this notice or your rights or interests, 
      please contact plaintiff’s counsel, Samuel H. 
      Rudman or Darren J. Robbins of Lerach Coughlin at 800/449-4900 or 
      619/231-1058, or via e-mail at [e-mail]. 
      If you are a member of this class, you can view a copy of the complaint 
      as filed or join this class action online at http://www.lerachlaw.com/cases/xinhua/. 
      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.
    
    
      The complaint charges Xinhua and certain of its officers and directors 
      with violations of the Securities Act of 1933. Xinhua is a diversified 
      media company in China.
    
    
      The complaint alleges that on March 9, 2007, Xinhua accomplished its IPO 
      of 23.07 million ADSs, representing 46.15 million common shares, at 
      $13.00 per ADS (including 1.5 million shares sold by Xinhua’s 
      Chairman and Chief Executive Officer, Fredy Bush) for net proceeds of 
      $300 million, pursuant to the Registration Statement. Due to defendants’ 
      positive but false statements following the IPO, by May 15, 2007, the 
      stock was trading around $12.00 per share.
    
    
      Then on May 21, 2007, Barron’s published an 
      article on Xinhua disclosing that the Registration Statement for the IPO 
      failed to disclose that Xinhua’s Chief 
      Financial Officer (“CFO”) 
      was simultaneously the Company’s CFO and an 
      investment banker and stockbroker who ran a securities firm that had 
      been under regulatory scrutiny in the past year.
    
    
      On this news, Xinhua’s stock price collapsed 
      from $10.79 per share on May 17, 2007 to close at $8.76 per share on May 
      21, 2007, on unusually high volume.
    
    
      Plaintiff seeks to recover damages on behalf of all persons or entities 
      who acquired Xinhua ADSs pursuant to the Company’s 
      false and misleading Registration Statement issued in connection with 
      its March 8, 2007 IPO. The plaintiff is represented by Lerach Coughlin, 
      which has expertise in prosecuting investor class actions and extensive 
      experience in actions involving financial fraud.
    
    
      Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San 
      Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, 
      Philadelphia and Seattle, is active in major litigations pending in 
      federal and state courts throughout the United States and has taken a 
      leading role in many important actions on behalf of defrauded investors, 
      consumers, and companies, as well as victims of human rights violations. 
      Lerach Coughlin lawyers have been responsible for more than $20 billion 
      in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) 
      has more information about the firm.