Ideation Investor Sues Over SearchMedia Merger

Law360, New York (December 23, 2010, 7:50 PM EST) -- A shareholder lodged a putative class action Thursday claiming the former Ideation Acquisition Corp. duped investors by overvaluing acquisition target SearchMedia Holdings Ltd. by $31 million.

The complaint, lodged by named plaintiff Hymie Akst in the U.S. District Court for the Southern District of Florida, seeks class action status and compensatory damages.

The suit claims that in April 2009 Ideation said it had signed an agreement to purchase SearchMedia, which operated outdoor billboard and in-elevator advertising networks in China.

Based on the value of Ideation shares,...
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