Giant Network sued American investors for sin Shi Yuzhu

Shi Yuzhu encountered the first lawsuit on the listing of the Giant Network (NYSE: GA), which appeared to be caused by gamers Data The cause of the dispute is actually a chain reaction caused by the giant's stock price slump.

 

Giant Network Litigation

 

In November 27, Shi Yuzhu, the Focal Point, encountered the first legal case after listing.

 

One USA Law Firms (Coughlin Stoia Geller Rudman & Robbins) announced, representative Investment A collective lawsuit against giant networks and specific executives and directors was filed with the Southern District Court of New York, requesting the defendant to compensate investors for losses caused by incomplete information disclosure.

 

It is reported that the lawsuit involved the incomplete information disclosed by the giant network: Company The average number of simultaneous online players and the highest number of simultaneous online players declined in the third quarter of online game journey.

 

USA Attorney Giant networks submitted a F-1/a listing application to the U.S. Securities and Exchange Commission around October 31, but in the listing application and prospectus, the Giant Network did not disclose the fact that the average number of simultaneous online players and the maximum number of simultaneous online players declined in the third quarter, which was disclosed only in the third quarter of November 20, the plaintiff claims that this behavior violates the U.S. Securities Law of 1933.

 

Juren network's third-quarter financial report showed that the average number of simultaneous online players in journey online was 0.481 million, down 6.6% from the previous month. The maximum number of simultaneous online players was 0.888 million, down 17.2% from the previous month.

 

"The claimant claims that the giant group has violated Article 11th and article 12th of the U.S. Securities Law of 1933, and the company hereby disclaims all allegations from the claimant and will actively respond to the complaint ." Relevant staff of giant company said in an interview with the reporter of China Times.

 

"We have published relevant data in the prospectus ." Tang Min, vice president of giant corporation, told the China Times reporter. However, the prospectus does not reflect the development trend of the maximum number of simultaneous online players and the average number of simultaneous online players in the third quarter, that is, the growth or decrease compared with the second quarter.

 

Tang Min said that he was unable to answer the question about why he did not publish the trend data. She said that he is already dedicated to this matter, and the official reply is confirmed by a lawyer.

 

"The change in the maximum number of simultaneous online players and the average number of simultaneous online players is two important data for online gaming companies. This data shows the development trend of their games, this trend cannot be calculated by investors themselves." Yu Yang, general manager of Yi Guan International, told the reporter of China Times.

 

Share price troubles

 

Analysts believe that the fact behind this lawsuit is the recent decline in shares of giant networks. The American law firm sued giants said their representatives of all investors who purchased the giant network American deposit credential between November 1 this year and November 19. The giant network went public on November 1, with the highest share price of 18.25 US dollars, its latest share price is only USD 11.61, down 36%. After the announcement of giant's financial report, its share price fell sharply, causing investment losses to investors. The US law firm on behalf of investors demanded compensation for losses from giant.

 

"There will never be any non-black-white law ." Wang ran, CEO of yikai capital Co., Ltd., told the reporter of the China Times: "But investors determine if Listed Companies If you intentionally conceal the data indicating the situation, you may be sued ."

 

Data shows that such overseas collective Litigation Chinese concept stocks There are already many Precedent cases. NetEase, Skynet, chinacnet, hangyou, and China Life Insurance have all become defendants, the content of the lawsuit is mostly concentrated on issues such as "frauds" and "concealment" in the prospectus.

 

Professionals believe that such collective litigation generally does not affect enterprise development, but once the United States law firm wins, the Giants need to provide compensation. In a similar situation, Skynet was once listed and, coincidentally, the American law firm that filed a lawsuit against skynet.