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The9 Ltd, NCTY Securities Stock Fraud

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Company: The9 Ltd,
Ticker Symbol: NCTY
Class Period: Nov-15-06 to Jul-15-09
Date Filed: Oct-21-09
Lead Plaintiff Deadline: Dec-20-09
Court: Southern District of New
Allegations:
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, Ltd. ("The9" or the "Company") (Nasdaq:NCTY) 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 The9 and certain directors and officers of The9 with violations of the Exchange Act. The9 is an online game operator and developer in China. 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.

The complaint alleges that, throughout the Class Period, defendants made numerous positive statements regarding the Company`s financial condition, business and prospects. The complaint further alleges that 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; (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 EA 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 - or 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 $8.34.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

The9 Ltd, NCTY Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible The9 Ltd, securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.

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