SOURCE: Izard Nobel LLP

September 16, 2010 17:33 ET

Izard Nobel LLP Announces Class Action Lawsuit Against SearchMedia Holdings Limited

WEST HARTFORD, CT--(Marketwire - September 16, 2010) -  The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of purchasers of the common stock of SearchMedia Holdings Limited (formerly, Ideation Acquisition Corp.) ("SearchMedia" or "Ideation" or the "Company") (NYSE: IDI) between April 1, 2009 and August 20, 2010 (the "Class Period"). 

Ideation was a blank-check company formed for the purpose of acquiring one or more businesses through a merger or other similar business combination. On October 30, 2009, Ideation completed the acquisition of SearchMedia International Limited ("SMIL") (a purported nationwide multi-platform media company in China) and changed its name to SearchMedia (the "Merger").

The Complaint charges SearchMedia and certain of its officers and directors with violations of federal securities laws. Specifically, the Complaint alleges that SearchMedia issued material misstatements in the joint proxy statement and prospectus dated October 5, 2009, and other public statements related to the Merger and SMIL and/or failed to disclose the following: (i) SMIL was improperly recognizing revenue; (ii) certain of SMIL's accounts receivable related to sales generated primarily in the in-elevator business were uncollectible and, as a result, SMIL's financial results were overstated; (iii) SMIL's financial results were not prepared in accordance with Generally Accepted Accounting Principles; and (iv) SMIL lacked adequate internal and financial controls.

If you are a member of the class, you may, no later than November 15, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/searchmedia/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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