NEW YORK, Feb. 20, 2020 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against 500.com Limited ("500.com" or the "Company") (NYSE: WBAI) and certain of its officers. The class action, filed in United States District Court for the Eastern District of New York, and docketed under 20-cv-00806, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired publicly traded 500.com securities between April 27, 2018 and December 31, 2019, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased 500.com securities during the class period, you have until March 16, 2020 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
500.com, through its subsidiaries, purports to provide online gaming services primarily in the People's Republic of China ("China") and Europe.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) 500.com executives and consultants engaged in a bribery scheme with Japanese officials in an effort to gain favor in a bid to run an upcoming Japanese casino resort; (ii) consequently, 500.com was in violation of Japanese anti-bribery laws and its Code of Ethics; and (iii) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 31, 2019, 500.com issued a press release announcing that a Special Investigation Committee was formed by the Board to investigate illegal money transfers and the role played by consultants following the arrest of one current consultant and two former consultants by the Tokyo District Public Prosecutors Office in Tokyo Japan.
On this news, shares of 500.com fell $1.08 per share, or 12.56%, to close at $7.52 per share on January 2, 2020, the following trading day, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP