Ad Co. Dodges Investor Action Over Chinese Profit Claims

Law360, New York (December 1, 2011, 12:00 PM EST) -- A California federal judge on Wednesday dismissed a proposed class action claiming a U.S. advertising company falsely reported huge revenues from its commercials on Chinese television in order to drum up investor interest in a February initial public offering.

Shareholders of China Century Dragon Media Inc. allege the company lied when it told the U.S. Securities and Exchange Commission that it generated $75 million in revenue in 2009 and $45 million in 2008. The company is based in the U.S. but sells all of its advertising...
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