2009-10-22 01:02:51 - Lawsuit on behalf of investors in The9 Limited (ADR) (Public, NASDAQ:NCTY) over alleged securities laws violations by The9 LTD and others – Deadline: December 18, 2009 – Contact the Shareholders Foundation, Inc at mail@shareholdersfoundation.com

An investor in The9 Limited (ADR) (Public, NASDAQ:NCTY) has filed a lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of American Depositary Shares (ADR) of The9, Ltd. (Nasdaq:NCTY) between November 15, 2006 and July 15, 2009, against The9 and certain of the officers and/or directors of The9 over alleged violations

of Federal Securities Laws.

If you purchased American Depositary Shares (ADR) of The9, Ltd. (Nasdaq:NCTY) between November 15, 2006 and July 15, 2009, you have certain options and there are strict and short deadlines running. Deadline: December 18, 2009. Those NCTY investors should contact the Shareholders Foundation, Inc. at email: mail(at)shareholdersfoundation.com or at: +1 (858) 779 – 1554. According to the complaint the plaintiff alleges that The9 Limited (ADR) and certain directors and officers of The9 violated the Exchange Act of 1934 by issuing between November 15, 2006 and July 15, 2009 made numerous positive statements regarding its financial condition, business and prospects, that were inaccurate statements of material fact when made because defendants failed to disclose material facts. Then 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 announced that it had not begun negotiations with Blizzard concerning the renewal of the World of Warcraft 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.
The9 Limited, located in Shanghai, is engaged in the business of developing and operating online games and related services. As of December 31, 2008, the Company owned and operated games in mainland China, which included World of Warcraft (WoW) , Soul of The Ultimate Nation (SUN), Granado Espada, EA Sports FIFA Online, Atlantica , Audition 2, World of Fighter (formerly Warriors of Fate Online), JiuZhouZhanJi, Field of Honor, Mystina Online, and Joyful Journey West (JJW). The9 LTD. reported in 2007 Total Revenue of $1.27961billion with a Net Income of $240.89million and in 2008 Total Revenue of $1.71149billion with a Net Income of $96.83million. Shares of The9 Ltd. traded recently at $7.80 per share, down from its 52weekHigh of $16.64 per share, $26.50 per share in July ’08 and over $50 per share in 2007.
Those who purchased American Depositary Shares (ADR) of The9, Ltd. (Nasdaq:NCTY) between November 15, 2006 and July 15, 2009, have certain options and there are strict and short deadlines running. Deadline: December 18, 2009. Those NCTY investors should contact the Shareholders Foundation.