The9 Limited (Nasdaq:NCTY)
MURRAY, FRANK & SAILER LLP is investigating securities fraud claims against The9 Limited ("The9" or the "Company") (Nasdaq: NCTY) and certain of its officers and directors, on behalf of purchasers of The9 American Depositary Shares ("ADSs") (as evidenced by American Depositary Receipts ("ADRs")) between November 15, 2006 and July 15, 2009, inclusive (the "Class Period").
Allegedly, during the Class Period, the Company, directly and through its affiliates and/or subsidiaries, operated licensed massively multiplayer online role-playing games 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.
Throughout the Class Period, defendants made numerous positive statements regarding the Company's financial condition, business and prospects. These statements were inaccurate statements of material fact when made because defendants failed to disclose that: (i) it was becoming increasingly less likely that the Company would be renewing the WoW contract with Blizzard Entertainment Inc. ("Blizzard"); (ii) The9 had not even begun formal negotiations with Blizzard regarding the contract renewal; (iii) The9 and Blizzard had been at odds regarding The9's operation of WoW in China; and (iv) the equity investment by Electronic Arts Inc. in The9 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.
On July 15, 2009, The9 reported a $36.9 million, 72% reduction, in net income for 2008 from $51.1 million in net income that it had reported for that period on February 23, 2009. Moreover, The9 admitted that it had not even begun negotiations with Blizzard concerning the renewal of the WoW contract as of the date that it had previously represented to investors. In response to this news, shares of The9's stock dropped 18% to close at $8.34.
If you are a member of the class described above, you may move the Court, not later than December 21, 2009, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you purchased The9 securities and wish to discuss this litigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
Contact:
MURRAY, FRANK & SAILER LLP
Eva Hromadkova
212-682-1818
800-497-8076
