VisionChina Sues DMG Vendors for Inflated Pricing
Mass transit digital advertiser VisionChina Media Inc. (Nasdaq:VISN) and its wholly owned subsidiary Vision Best have launched a suit against former shareholders of subway television advertiser Digital Media Group (DMG), from which VisionChina acquired the company for $160 million in November2009, alleging that the shareholders intentionally inflated the value of the company. The defendants include Gobi Partners, Oak Investment Partners XII, Shareholder Representative Services and former DMG CEO Thomas Tsao, the report said.
VisionChina Media and Vision Best are seeking an injunction to withhold payment of remaining installments worth $60 million and a return of unpaid cash or shares held in escrow and compensation of at least $80 million, in addition topunitive damages and legal costs, the report said.
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