500.com Ltd (NYSE: WBAI) Investor Securities Class Action Lawsuit 01/15/2020

If you purchased shares of 500.com Ltd (NYSE: WBAI), you have certain options and for certain investors are short and strict deadlines running. Deadline: March 16, 2020. NYSE: WBAI investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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Company Name(s): 
500.com
Case Name: 
500.com Shareholder Class Action Lawsuit 01/15/2020
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: WBAI
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/15/2020
Class Period Begin: 
04/27/2018
Class Period End: 
12/31/2019
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
03/16/2020
Summary: 

An investor in shares of 500.com Ltd (NYSE: WBAI) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by 500.com Ltd in connection with certain allegedly false and misleading statements made between April 27, 2018 and December 31, 2019.

On December 31, 2019, 500.com announced “that the Company's Board of Directors (the ‘Board’) has formed a Special Investigation Committee (‘SIC’) to internally investigate alleged illegal money transfers and the role played by consultants following the arrest of one consultant (also a former director of the Company's subsidiary in Japan) and two former consultants by the Tokyo District Public Prosecutors Office.” 500.com Ltd further disclosed the resignation of Xudong Chen as Chairman of the Company’s Board, effective December 30, 2019, and that “the Board has accepted the request from Mr. Zhengming Pan, Director and Chief Executive Officer, to temporarily step aside from his positions, effective December 30, 2019, until the conclusion of the SIC’s investigation in order to ensure a thorough and fair investigation.”

Shares of 500.com Ltd (NYSE: WBAI) declined from $11.50 per share in October 2019 to as low as $7.11 per share on January 6, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of 500.com Ltd (NYSE: WBAI) common shares between April 27, 2018 and December 31, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 27, 2018 and December 31, 2019, the defendants made false and/or misleading statements and/or failed to disclose that 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, that consequently, 500.com was in violation of Japanese anti-bribery laws and its Code of Ethics, and that 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.