SearchMedia Holdings Ltd. (Ideation Acquisition Corp.)

Company Name
SearchMedia Holdings Limited (f/k/a Ideation Acquisition Corp.)
Stock Symbol
IDI
Class Period
April 1, 2009 to September 20, 2010
Court
Central District of California
Status
Settled

This action is brought on behalf of all purchasers of the securities of SearchMedia Holdings Limited (formerly, Ideation Acquisition Corp.) during the period April 1, 2009, through August 20, 2010, inclusive (the “Class Period”). The Complaint charges certain of the Company’s current and former executive officers and directors with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and S.E.C. Rule 10b-5. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning the business, operations and prospects of SearchMedia and SearchMedia International Limited ("SMIL") were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that SMIL was improperly recognizing revenue; (2) that certain of SMIL’s accounts receivable related to sales generated primarily in the in-elevator business were uncollectible, (3) that, as a result, SMIL’s financial results were overstated; (4) that SMIL’s financial results were not prepared in accordance with Generally Accepted Accounting Principles; (5) that SMIL lacked adequate internal and financial controls; and (6) as a result of the above, SMIL’s financial statements were materially false and misleading at all relevant times.