LOS ANGELES, Nov. 26, 2009 LawFuel.com — Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased American Depositary Shares (as evidenced by American Depositary Receipts) of
The9 Limited (“The9” or the “Company”) (Nasdaq:NCTY) between November 15, 2006 and July 15, 2009, inclusive (the “Class Period”), have only
26 days until the December 21, 2009, deadline to move the Court to serve as Lead Plaintiff in the securities fraud class action lawsuit.
The case filed by Glancy Binkow & Goldberg LLP, O’Dea v.The9 Limited, et al., No. 09-cv-9166-RJH, has been assigned to the Honorable Richard J. Holwell, United States District Judge for the Southern District of New York.
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 [email protected], or visit our website at http://www.glancylaw.com.
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 charges the Company and certain of its current and former executive officers with violations of the Securities Exchange Act of 1934, among other things, and further alleges that throughout the Class Period 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, and 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.
The Private Securities Litigation Reform Act of 1995 (“PSLRA”) requires the Court to appoint a “Lead Plaintiff” in this case. Any person or group who suffered a loss as a result of purchasing American Depositary Shares of The9 Limited between November 15, 2006 and July 15, 2009, may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than the December 21, 2009 deadline.
Glancy Binkow & Goldberg LLP is a law firm with significant experience in prosecuting class actions, substantial expertise in actions involving corporate fraud, and is representing shareholders of The9 in this litigation.
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 or by e-mail to [email protected], or visit our website at www.glancylaw.com.