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Giant Interactive Group, Inc. Summary: According to a law firm press release dated November 26, 2007, a class action has been commenced on behalf of purchasers of Giant Interactive Group, Inc. American Depositary Shares pursuant and/or traceable to the Company’s initial public offering on or about November 1, 2007 through November 19, 2007.
The complaint charges Giant Interactive and certain of its officers and directors with violations of the Securities Act of 1933. Giant Interactive develops and operates online games in the People's Republic of China. The Company’s primary game is ZT Online which is a free-to-play massive multi-player online game.
According to the complaint, on or about October 31, 2007, Giant Interactive filed with the Securities and Exchange Commission a Form F-1/A Registration Statement, for the IPO. On or about November 1, 2007, the Prospectus with respect to the IPO, which forms part of the Registration Statement, became effective and, including the exercise of the over-allotment, more than 57 million shares of Giant Interactive’s ADSs at $15.50 per ADS were sold to the public, thereby raising more than $886 million. The complaint alleges that the Registration Statement and the Prospectus failed to disclose that the Company had experienced a decline in average concurrent users (“ACU”) and peak concurrent users (“PCU”) for the third quarter of 2007 due to a significant rule change for ZT Online.
On November 19, 2007, after the close of the market, Giant Interactive issued a press release announcing its financial results for the third quarter of 2007, the period ending September 30, 2007. Among other things, the Company reported that ACU for the third quarter was 481,000, a decrease of 6% from the second quarter of 2007 and that PCU for the third quarter was 888,000, a decrease of 17.2% from the second quarter of 2007. Then, on November 20, 2007, before the market opened, Giant Interactive held a conference call with analysts and investors to review the Company’s earnings release. During the conference call, Giant Interactive attributed the decline in the third quarter ACU and PCU figures to a rule change to ZT Online that was implemented to discourage gold farming activity. Following the Company’s earnings release and conference call, on November 20, 2007, the price of Giant Interactive ADSs dropped from $14.88 per ADS to $11.10 per ADS on extremely heavy trading volume.
INDUSTRY CLASSIFICATION:
SIC Code: 7389
Sector: Technology
Industry: Software & Programming
| COMPANY/ISSUER NAME: | Giant Interactive Group, Inc. |
| COMPANY/ISSUER TICKER: | GA |
| COMPANY WEBSITE: | http://www.ztgame.com.cn |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Pyramid Holdings, Inc., et al. v. Giant Interactive Group, Inc., et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint For Violations Of Federal Securities Laws | |||
| Type: Complaint | Date on the document: 11/26/2007 | ||
| OTHER DOCUMENTS | |||
| Case Name and/or Number: | |||
| Type: | Date on the document: | ||
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