Violations of federal securities laws as a result of a series of materially false statements. The Complaint charges 500.com and certain of its executives with failing to disclose material information in connection with its IPO and during the Class Period, violating federal securities laws. According to the Complaint, Jinghua Daily published an article on May 7, 2014 revealing that the China Welfare Lottery Administration Center and the China Sports Lottery Administration Center both said that they had never authorized any website or agency to conduct online lottery sales to date and that all online lottery sales are illegal. On this news, the price of 500.com's shares fell by more than 15%. The Complaint alleges that on January 17, 2015, Sina.com published an article reporting that certain Chinese governmental authorities issued a notice requiring provincial agencies to conduct self inspection with regard to unauthorized online lottery sales. Then, on February 25, 2015, 500.com announced that certain provincial sports lottery administration centers, to which it provides sport lottery sales services, planned to temporarily suspend accepting online purchase orders for lottery products, in response to a notice issued by governmental authorities. On this news, the price of 500.com's shares plummeted by more than 22%. Filed in C.D. Cal.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 4/28/2015.
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