VisionChina Media Responds to Contempt Ruling of New York Supreme Court
BEIJING, Jan. 8, 2013
BEIJING, Jan. 8, 2013 /PRNewswire/ --VisionChina Media Inc.("VisionChina
Media" or the "Company") (Nasdaq: VISN), one ofChina's largest out-of-home
digital television advertising networks on mass transportation systems today
announced that on Monday, January 7, 2013, the New York State Supreme Court
issued an order of civil contempt against VisionChina Media, Inc. and Vision
Best Limited (collectively, "VisionChina") for their failure to comply fully
with an August 13, 2012 turnover order requiring VisionChina to post security
in connection with prejudgment orders of attachment totaling $60 million.
JusticeCharles E. Ramosof theNew York StateSupreme Courtissued an order
of civil contempt against VisionChina in the case entitled Shareholder
Representative Services LLC, et al, v. VisionChina Media Inc. et al. The
ruling, after a brief hearing, was based on the judge's finding that
VisionChina had failed to comply fully with an August 13, 2012 turnover order
requiring VisionChina to post security in connection with prejudgment orders
of attachment totaling $60 million.The turnover order required VisionChina to
pay that amount to the New York City Sheriff or enter into an escrow of the
funds in the People's Republic of China or alternative security arrangement
acceptable to plaintiffs.Although VisionChina arranged to transfer to the
Sheriff most of the assets of its subsidiaries located outside the PRC (almost
$4.5 million), VisionChina had advised the judge that it was not able to
transfer additional assets held by its PRC subsidiary because of restrictions
of the PRC's State Administration of Foreign Exchange.
The contempt sanction is a fine of $250 plus payment of the plaintiffs'
attorneys' fees incurred on the contempt application. The amount of the fees
is unknown at this point. Plaintiffs are required to submit an affidavit of
services detailing the amount of their fees, and VisionChina will have an
opportunity to object and respond to that.
VisionChina has appealed from the August 13, 2012 turnover order and the
prejudgment attachment orders. Its appeals will be argued in the New York
State Court's Appellate Division on January 15, 2013. VisionChinawill also
continue to vigorously pursue its appeal to revive its affirmative claims
against Gobi Partners and Oak Investment Partners for fraud and other relief.
AboutVisionChina Media Inc.
VisionChina Media Inc.(Nasdaq: VISN) operates an out-of-home advertising
network on mass transportation systems, including buses and subways. As
ofSeptember 30, 2012,VisionChina Media's advertising network included
107,821 digital television displays on mass transportation systems in 19
ofChina's economically prosperous cities, including Beijing, Guangzhou and
Shenzhen, as secured by exclusive agency agreements or joint venture
contract.VisionChina Mediahas the ability to deliver real-time,
location-specific broadcasting, including news, stock quotes, weather and
traffic reports, and other entertainment programming. For more information,
please visit www.visionchina.cn.
This press release contains forward-looking statements. These statements
constitute "forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will", "expects", "anticipates",
"future", "intends", "plans", "believes", "estimates" and similar statements.
Among other things, the quotations from management in this press release
contain forward-looking statements. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially from those
in the forward-looking statements. Further information regarding these and
other risks is included in the Company's filings with theU.S. Securities and
Exchange Commission, including its registration statements on Form F-1 and its
annual reports on Form 20-F. The Company does not undertake any obligation to
update any forward-looking statement as a result of new information, future
events or otherwise, except as required under applicable law.
For investor and media inquiries, please contact:
VisionChina Media Inc.
Investor Relations Director
VisionChina Media Inc.
Inthe United States:
Ms.Jessica Barist Cohen
Ogilvy Financial,New York
SOURCE VisionChina Media Inc.
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