A lawsuit was filed on behalf of investors in 500.com Ltd (NYSE:WBAI) shares over alleged securities laws violations. Deadline: April 28, 2015. NYSE:WBAI investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 03/03/2015 -- An investor, who purchased shares of 500.com Ltd (NYSE:WBAI), filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by 500.com Ltd in connection with certain allegedly false and misleading statements made in connection with 500.com Ltd's initial public offering ("IPO") on or about November 22, 2013 and between November 22, 2013 through February 25, 2015.
Investors who purchased a significant amount of shares of 500.com Ltd (NYSE:WBAI) between November 22, 2013 and February 25, 2015, have certain options and for certain investors are short and strict deadlines running. Deadline: April 28, 2015. NYSE:WBAI investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of 500.com Ltd (NYSE:WBAI) American Depository Shares pursuant and/or traceable to the Company's IPO on or about November 22, 2013 and between November 22, 2013 through February 25, 2015, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that 500.com issued materially false and misleading statements to investors by failing to disclose the risk of provincial sports lottery administration centers voluntarily suspending the acceptance of online purchase orders for lottery products.
On May 7, 2014, a report alleged that online sports lottery sales in China are illegal without prior authorization and the China Sports Lottery Administration Center (the "CSLAC") publicly stated it had not authorized any sports lottery websites. The report claimed that this directly contradicts 500.com Ltd's filings with the U.S. Securities and Exchange Commission stating that it was previously approved to sell sports lottery products online on behalf of the CSLAC in China and that consequently, 500.com Ltd's business may be subject to suspension.
On January 17, 2015, Sina.compublished an article reporting that the certain Chinese governmental authorities issued a notice requiring provincial agencies to conduct self inspection with regards to unauthorized online lottery sales.
On February 25, 2015, 500.com Limited (NYSE: WBAI) announced that it had come to the its attention that certain provincial sports lottery administration centers to which the Company provides sport lottery sales services plan to temporarily suspend accepting online purchase orders for lottery products, in response to the Notice on Issues Related to Self-Inspection and Self-Remedy of Unauthorized Online Lottery Sales (the "Notice"), which was jointly promulgated by the Ministry of Finance, the Ministry of Civil Affairs and the General Administration of Sports of the People's Republic of China on January 15, 2015.
500.com Limited said that the Notice requires provincial and municipal government branches, including financial, civil affairs and sports bureaus, to conduct inspection and take remedial measures for unauthorized online lottery sales within their respective jurisdictions.
500.com Limited said that the scope of inspection includes, among other things, commercial contract arrangements, online lottery products, lottery sales data exchange, online lottery sales channels, and sales commission fees in connection with unauthorized engagements of online sales agents by lottery administration centers and that the Notice further requires a formal report on the result of the self-inspection and self-remedy be submitted by each provincial or municipal government to the Ministry of Finance, the Ministry of Civil Affairs and the General Administration of Sports of the People's Republic of China by March 1, 2015.
Shares of 500.com Ltd (NYSE:WBAI) declined from $49.50 per share on May 7, 2014, to as low as $9.20 per share on February 27, 2015.
Those who purchased shares of 500.com Ltd (NYSE:WBAI) have certain options and should contact the Shareholders Foundation.
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