Back to NCTY
Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased American Depositary Shares of The9 Limited, Announces Class Action Lawsuit and Seeks to Recover Losses

Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who purchased American Depositary Shares, as evidenced by American Depositary Receipts, of The9, Ltd. (“The9” or the “Company”) (Nasdaq:NCTY) between November 15, 2006 and July 15, 2009, inclusive (the “Class Period”).

A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at http://www.glancylaw.com.

The Complaint charges The9 and certain of the Company’s current and former executive officers with violations of federal securities laws. The9 operates as an online game operator and developer in mainland China, and directly or through affiliates operates licensed multiplayer online role-playing games and advanced casual games, including Soul of The Ultimate Nation, Granado Espada and Atlantica, among others. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning The9’s business, operations and prospects were materially false and misleading. Specifically, the defendants made false and/or misleading statements and/or failed to disclose that: (i) it was becoming increasingly less likely that the Company would be renewing the World of Warcraft contract with Blizzard Entertainment Inc. (“Blizzard”); (ii) The9 had not even begun formal negotiations with Blizzard regarding the World of Warcraft contract renewal; (iii) The9 and Blizzard had been at odds regarding The9’s operation of World of Warcraft in China; and (iv) the equity investment in The9 by Electronic Arts Inc. – a leading developer and publisher of interactive entertainment – had made it less likely that Blizzard would renew the World of Warcraft contract because Blizzard would essentially be doing business with one of its greatest competitors.

On July 15, 2009, The9 shocked investors when it reported a reduction in net income for 2008 of $36.9 million – an approximately 72% reduction from $51.1 million in net income that it had reported for that period on February 23, 2009. In addition, the Company admitted that, despite its earlier representations, The9 had not even begun negotiations with Blizzard concerning the renewal of the World of Warcraft contract. In response to this news, shares of The9’s stock dropped 18%, to $8.34 per share.

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.

If you are a member of the class described above, you may move the Court, no later than December 21, 2009, to serve as lead plaintiff; however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, or Richard A. Maniskas, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to info@glancylaw.com, or visit our website at http://www.glancylaw.com.

(c) 2009 Business Wire, Inc., All rights reserved. All of the news releases and other content contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's members, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. Any copying or reproduction (other than for an individual user's personal reference), redistribution, reposting or other transmission or communication is expressly prohibited without prior written permission of Business Wire, Inc
Back to NCTY
Wikinvest © 2006, 2007, 2008, 2009. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki