MURRAY, FRANK & SAILER LLP COMMENCES CLASS ACTION AGAINST CERTAIN OFFICERS AND DIRECTORS OF KONGZHONG CORP. ALLEGING VIOLATIONS OF FEDERAL SECURITIES LAW - KONG
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New York (PrimeZone) September 10, 2004
A class action complaint has been filed in the United States District Court for the Southern District of New York, on behalf of all persons or entities who purchased or otherwise acquired KongZhong Corporation ("KongZhong" or the "Company") securities (NASDAQ: KONG) between July 9, 2004 through August 17, 2004 (the "Class Period"). The Complaint names KongZhong, Yunfan Zhou, Nick Yang, Richard Wei, UBS Investment Bank, Banc of America Securities LLC, and CIBC World Markets as defendants.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff’s counsel, Eric J. Belfi at Murray, Frank & Sailer llp, 275 Madison Avenue, Suite 801, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at [email protected].
The complaint charges defendants with violations of Sections 11, 12, and 15 of the Securities Act of 1933. Specifically, the complaint alleges that the Prospectus was materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (i) that in early June 2004 the Company had carried inappropriate content on its interactive voice response (IVR) service, which was in violation of the Company’s agreement with China Mobile; (ii) that in response to the Company’s violation of its agreements with China Mobile, the Company would be subject to sanctions that could materially impact or alter its business going forward; and (iii) as a result of the foregoing, the Company’s relationship with China Mobile would be negatively impacted.
As a result of defendants’ false and misleading statements the price of KongZhong securities was artificially inflated throughout the Class Period, causing plaintiff and the other members of the Class to suffer damages.
Plaintiff is represented by the law firm of Murray, Frank & Sailer llp. 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 KongZhong securities during the Class Period described above, you may, no later than October 18, 2004, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.murrayfrank.com. Contact plaintiff’s counsel Eric J. Belfi or Aaron Patton at Murray, Frank & Sailer llp to further discuss this action, this announcement, or your rights or interests.
MURRAY, FRANK & SAILER
Eric J. Belfi
Fax: (212) 682-1892
Email: [email protected]