FAB Universal Denies Allegations Made In Report Published By Alfred Little

(RTTNews) - FAB Universal Inc. (FU), a worldwide distributor of digital media and entertainment, on Friday denied the misleading and inaccurate allegations made in a recent report published by Alfred Little.

The company noted that it would, as soon as possible, issue a public statement to refute these defamatory remarks and that it expected to be in a position to provide a response shortly.

On Thursday, the Rosen Law Firm announced that it was investigating potential securities claims against FAB Universal Corporation resulting from allegations that the Company may have issued materially misleading business information to the investing public, namely, that its business in China is a fraction of what it purportedly claims in its filings with the U.S. Securities and Exchange Commission.

On Thursday, Alfredlittle.com issued a report asserting that FAB Universal has greatly exaggerated its true financial performance. The report stated, among others things, that: contrary to FAB's anti-piracy claims, its "Intelligent Media Kiosks" are in fact loaded with clearly pirated U.S. movies; FAB's kiosk manufacturers acknowledged that they historically supplied only 10% of the 16,820 units FAB claims to have deployed; and FAB's director of franchisee sales acknowledged that FAB only has approximately 1,000 kiosks in Beijing, China, in stark contrast to the 3,954 kiosks that the Company stated it had in its June 1, 2012, proxy statement.