BALA CYNWYD, Pa., Jan. 21 2005 – LAWFUEL – The Law News Network — The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the Southern District of New York on behalf of all
securities purchasers of 51job, Inc. (Nasdaq: JOBS) (“51job” or the “Company”)
between November 4, 2004 and January 14, 2005, inclusive (the “Class Period”).
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 Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check,
Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
info@sbclasslaw.com.
The complaint charges 51job, Donald Lucas, Rick Yan and Kathleen Chien
with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of
1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint
alleges that the Company failed to disclose and misrepresented the following
material adverse facts which were known to defendants or recklessly
disregarded by them: (1) that the Company improperly recognized recruitment
advertising revenue in the third quarter; (2) that the Company, a purported
expert in Chinese labor markets, failed to realize that the drop in late-
December advertising suggested that many Chinese firms have adopted a more
Western schedule for hiring; (3) that as a result of this market shift, the
Company was forced to sharply lower its profit outlook; and (4) that as a
consequence of the foregoing, defendants lacked a reasonable basis for their
positive statements about the Company’s growth and progress.
On January 18, 2005, before the market opened, 51job announced softness in
sales for the latter part of the month of December 2004, the exit of the
peripheral stationery and office supplies business and updated guidance for
the fourth quarter of 2004. The Company expected fourth quarter total
revenues to be between RMB117 and RMB121 million, compared with RMB140
million, the low-end of its previous forecasted range. The news shocked the
market. Shares of 51job fell $15.49 per share, or 35.37 percent, on January
18, 2005, to close at $28.32 per share, on unusually high volume.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin &
Barroway is a driving force behind corporate governance reform, and has
recovered in excess of a billion dollars on behalf of institutional and high
net worth individual investors. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online, please visit
http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than
March 22, 2005 move the Court to serve as lead plaintiff of the class, if you
so choose. A lead plaintiff is a representative party that acts on behalf of
other class members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member’s claim is
typical of the claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or more
class members may together serve as “lead plaintiff.” Your ability to share
in any recovery is not, however, affected by the decision whether or not to
serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.
