VisionChina Media Provides Update Regarding Appeals to Supreme Court of New
BEIJING, Sept. 6, 2013
BEIJING, Sept. 6, 2013 /PRNewswire/ -- VisionChina Media Inc. ("VisionChina
Media" or the "Company") (Nasdaq: VISN), one of China's largest out-of-home
digital television advertising networks on mass transportation systems, today
provided updates regarding a number of appeals and cross-appeals before the
Supreme Court of the State of New York, Appellate Division, as well as
enforcement proceedings in the Cayman Islands, as detailed below.
On June 11, 2013, the Appellate Division, First Department of the Supreme
Court of the State of New York entered a Decision and Order (the "Appellate
Division Ruling"), determining appeals and cross-appeals from rulings by Hon.
Charles E. Ramos of the Supreme Court, New York County (the "Trial Court").
The Appellate Division Ruling (a) affirmed the Trial Court's orders of
November 3, 2011 granting the motions of the Selling Shareholders to dismiss
the claims and counter-claims of VisionChina Media and Vision Best
(collectively, "VisionChina") for fraud, unjust enrichment and declaratory
judgment, (b) reversed that part of the Trial Court's order of June 15, 2012
that denied the Selling Shareholders' motion for partial summary judgment on
the defense asserted by VisionChina to the Selling Shareholders' claims for
breach of contract, including the defense based on allegations of intentional
destruction of certain electronic data that was to be conveyed as part of the
sale of DMG's assets, and (c) affirmed the Trial Court's denial of the Selling
Shareholders' motion to dismiss the breach of contract and indemnity claim
asserted by VisionChina, seeking an amount not less than US$2,785,633, based
on alleged inaccuracies in the representations and warranties within the
With respect to the orders entered by the Trial Court regarding the attachment
of VisionChina's assets, the Appellate Division Ruling (d) reversed the Trial
Court's order entered on November 4, 2011, granting the motion by the Selling
Shareholders for pre-judgment attachment of assets of VisionChina, (e)
reversed the Trial Court's order entered on June 15, 2012, granting the motion
by the Selling Shareholders to confirm the two ex parte orders of attachment
they previously obtained in the aggregate amount of US$60 million (the
"Attachment Orders"), and (f) reversed the Trial Court's order entered on
August 13, 2012, granting the motion of the Selling Shareholders' to compel
VisionChina to transfer US$60 million into New York pursuant to the Attachment
Orders (the "Turnover Order").
Neither VisionChina nor the Selling Shareholders sought leave to appeal the
Appellate Division Ruling, which therefore became final. On July 15, 2013 the
Trial Court entered an order requested by the Selling Shareholders granting
summary judgment on two of their causes of action in the amount of $60 million
plus interest and certain costs and permitting execution on such judgment. On
July 26, 2013 the Clerk of the Trial Court entered judgment in favor of the
Selling Shareholders pursuant to the July 15, 2013 order, directing that they
shall recover from VisionChina the sum of $71,800,047.46 and have execution
thereof (the "New York Judgment").
On July 29, 2013 proceedings were begun in the Cayman Islands against
VisionChina Media, Inc. for the enforcement of the New York Judgment entered
on July 26, 2013 (the "Cayman Islands Proceeding"). VisionChina Media, Inc.
filed its defense on August 28, 2013, and those proceedings are progressing.
The Company is currently in the process of settlement discussions with the
Selling Shareholders in connection with the New York Judgment and the Cayman
About VisionChina Media Inc.
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising
network on mass transportation systems, including buses and subways. As of
March 31, 2013, VisionChina Media's advertising network included 107,838
digital television displays on mass transportation systems in 19 of China's
economically prosperous cities, including Beijing, Shanghai, Guangzhou and
Shenzhen. VisionChina Media has 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 http://www.visionchina.cn.
Safe Harbor Statement
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 the U.S. Securities and
Exchange Commission, including its registration statement on Form F-1 and its
annual report 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.
Ms. Shuning Yi
VisionChina Media Inc.
Mr. Colin Wang
Investor Relations Director
VisionChina Media Inc.
Tel: +86 135-1001-0107
In the United States:
Mr. Justin Knapp
Ogilvy Financial, U.S.
SOURCE VisionChina Media
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