INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP HAS FILED A SHAREHOLDER CLASS ACTION AGAINST 51JOB, INC. - JOBS
New York, NY (PrimeZone) February 4, 2005 - Murray, Frank & Sailer LLP announces a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of shareholders who purchased or otherwise acquired the American Depository Receipts (“ADRs”) of 51job, Inc. (“51job” or the “Company”) (NASDAQ: JOBS) between November 4, 2004 and January 14, 2005, inclusive (the “Class Period”).
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The complaint charges 51job and certain of its officers and directors with violations of the Securities Exchange Act of 1934. 51job describes itself as the “leading provider of integrated human resource services in China with a strong focus on recruitment related services.”
The complaint alleges that, during the Class Period, defendants reported the Company’s operating results for the third quarter of 2004 and made positive statements regarding its outlook for the fourth quarter of 2004. In truth and in fact, however, 51job’s financial statements for the third quarter of 2004 were artificially inflated as a result of the Company's premature recognition of revenue in its online services segment, which also violated Generally Accepted Accounting Principles and its own revenue recognition policies. In addition, defendants knowingly or recklessly made positive statements, which were lacking in any reasonable basis, about the Company’s outlook for the fourth quarter of 2004. Specifically, the Company estimated that total revenues for the fourth quarter of 2004 would be in the range of RMB140 million to RMB145 million and diluted earnings per share would be between RMB0.42 and RMB0.44. On January 18, 2005, the Company drastically cut its estimates for its revenues and earnings per share by approximately 17% and 40%, respectively. The Company now expects to earn total revenues of RMB117 and RMB121 million and earnings per common share of between RMB0.24 and RMB0.27.
Upon this news, shares of the Company’s ADRs fell more than 35%, or $15.50 per share, to close at $28.32 per share, on extremely high trading volume.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired 51job ADRs on any world exchange between November 4, 2004 and January 14, 2005, and sustained damages, you may, no later than March 6, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
Aaron D. Patton
Fax: (212) 682-1892
Email: [email protected]