Key Developments For The9 Limited
The9 Limited (NCTY.O) (Nasdaq)
Brower Piven, A Professional Corporation Announces Class Action Lawsuit Against The9 Limited
Brower Piven, A Professional Corporation announced that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of American Depositary Shares (ADSs) (as evidenced by American Depositary Receipts (ADRs) of The9 Limited during the period between November 15, 2006 and July 15, 2009, inclusive (the Class Period). The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period it was becoming increasingly less likely that the Company would be renewing the licensing contract for World of Warcraft (WoW) with Blizzard Entertainment Inc. (Blizzard), a Vivendi subsidiary; The9 had not even begun formal negotiations with Blizzard regarding the contract renewal; The9 and Blizzard had been at odds regarding The9's operation of WoW in China; the equity investment by Electronic Arts Inc. in The9 had made it less likely that Blizzard would renew the WoW contract because, to do so would require Blizzard to, in essence, do business with one of its greatest competitors. According to the complaint, after the Company revealed on July 15, 2009 that it had not even begun negotiations with Blizzard for renewal of the WoW contract, the value of The9's stock declined significantly.
Izard Nobel LLP Announces Class Action Lawsuit Against The9 Limited
The law firm of Izard Nobel LLP announced that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of American Depositary Shares (ADSs) of The9 Limited between November 15, 2006 and July 15, 2009 (Class Period). The complaint charges that The9 Limited and certain of its directors and officers violated federal securities laws. The complaint further alleges that defendants failed to disclose the following: it was becoming increasingly less likely that The9 Limited would be renewing the World of Witchcraft (WoW) contract with Blizzard; The9 Limited had not even begun formal negotiations with Blizzard regarding contract renewal; The9 Limited and Blizzard had been at odds regarding The9 Limited's operation of WoW in China; and the equity investment by EA Sports Online in The9 Limited had made it less likely that Blizzard would renew the WoW contract because Blizzard would essentially be doing business with one of its greatest competitors.
Kendall Law Group Announces Securities Class Action Against The9 Limited
Kendall Law Group announced that a lawsuit has been filed against The9 Limited for securities violations related to public statements made by the company between November 15, 2006 and July 15, 2009. The complaint, filed in the Southern District of New York, charges The Company and certain of its Officers and Directors with violations of the federal securities laws. According to the complaint, defendants made inaccurate statements of material fact by failing to disclose that it was unlikely that the company would be renewing the World of Warcraft contract with Blizzard. The Company had not even begun formal negotiations regarding the contract renewal and had been at odds with Blizzard due to The Company's dealings with EA, one of Blizzard's biggest competitors.
Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against The9 Limited
Coughlin Stoia Geller Rudman & Robbins LLP (Coughlin Stoia) announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of American Depositary Shares (ADSs) (as evidenced by American Depositary Receipts (ADRs)) of The9 Limited between November 15, 2006 and July 15, 2009, inclusive (the Class Period), against The9 and certain of the officers and/or directors of The9 for violations of the Securities Exchange Act of 1934 (the Exchange Act). The complaint charges the Company and certain directors and officers of the Company with violations of the Exchange Act. According to the complaint, during the Class Period, the Company, directly and through its affiliates and/or subsidiaries, operated licensed massively multiplayer online role-playing games (MMORPGs) and advanced casual games in China, including World of Warcraft (WoW), Soul of The Ultimate Nation, Granado Espada, EA SPORTS FIFA Online 2, and Atlantica. It also operated other licensed games in mainland China, including Audition 2 and Field of Honor.
The9 Limited Selects Deloitte As Independent Registered Public Accounting Firm
The9 Limited announced that the Audit Committee of its Board of Directors has engaged the services of Deloitte Touche Tohmatsu CPA Ltd. (DTTC) as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2009. DTTC replaces the Company's previous independent registered accountant, PricewaterhouseCoopers Zhong Tian CPAs Limited Company (PricewaterhouseCoopers), effective immediately. The Company and PricewaterhouseCoopers have not had any disagreement on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures for which disagreement, if not resolved to the satisfaction of PricewaterhouseCoopers, would have caused PricewaterhouseCoopers to make reference to the subject matter of the disagreement in connection with its report on the Company's consolidated financial statements.
