Washington, DC: (Jun-11-07) A class action securities lawsuit was brought against South Korea-based Gravity Co., Ltd., an online game developer, over the purchases of Gravity's American Depository Shares between Feb. 7, 2005, and Nov. 10, 2005. The lawsuit was filed on behalf of Gravity securities buyers.
In a settlement reached, Gravity agreed to set up a $10 million fund to resolve buyers' claims, of which Gravity will pay $5 million. The company stated that settlement administration and plaintiffs' lawyers' fees and various expenses will be paid from the fund before class action suit members are paid. The settlement agreement was reached, though Gravity denied and continues to deny any and all wrongdoing in connection with this matter, but believes that given the uncertainties and costs associated with litigation, the settlement is in the best interests of the company and its shareholders. [