500.com Ltd (NYSE: WBAI) Investor Securities Class Action Lawsuit 02/27/2015

If you purchased American Depository Shares (ADS) of 500.com Ltd (NYSE: WBAI), you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
500.com
Case Name: 
500.com Shareholder Class Action Lawsuit 02/27/2015
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: WBAI
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/27/2015
Class Period Begin: 
11/22/2013
Class Period End: 
03/02/2015
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
04/28/2015
Date Settled: 
11/01/2016
Settlement Amount: 
$2,500,000
Deadline to Participate in Settlement: 
01/14/2017
Settlement Notice: 
Settlement Proof: 
Summary: 

The settlement includes all persons who purchased or otherwise acquired American Depository Shares (ADSs) of 500.com Ltd between November 22, 2013 and March 2, 2015.

March 6, 2017 - The court approved the settlement and dismissed the action with prejudice.

November 1, 2016 - The court preliminarily approved the settlement.

October 28, 2016 - Parties filed a stipulation of settlement.

September 15, 2015 - The lead plaintiff filed an amended complaint on behalf of investors who purchased American Depository Shares (ADS) of 500.com Ltd (NYSE: WBAI) pursuant to or traceable to Initial Public Offering (IPO) commenced on or about November 22, 2013 and all purchasers of American Depository Shares (ADS) of 500.com Ltd (NYSE: WBAI) between November 22, 2013 and March 2, 2015. The lead plaintiff alleges that the defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by issuing false and misleading statements between November 22, 2013 and March 2, 2015.

July 7, 2015 - Lead plaintiff and lead counsel were appointed.

April 28, 2015 - Lead plaintiff motions were filed.

February 27, 2015 - An investor in American Depository Shares (ADS) 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.

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.com published 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 Ltd (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 Ltd 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 Ltd 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.