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Case Status:    SETTLED
On or around 06/03/2003 (Date of order of final judgment)

Filing Date: October 22, 2001

According to the docket, on May 19, 2003, the Court entered the Order by U.S. District Judge Richard Owen, approving the proposed settlement as fair, reasonable and adequate. Pursuant to Rule 23 of the FRCP, the Court certified the Class, and awarded plaintiffs' counsel $1,450,000, as attorneys' fees, representing 1/3 of the gross Settlement Fund, reimbursement of their expenses incurred to date in the amount of $63,516.05, plus accrued interest on the attorneys' fee award and expense reimbursement. On June 3, 2003, the Court entered the Order and Final Judgment, and the case was closed.

By the Notice of Pendency of Class Action, a Settlement Fund consisting of $4,350,000 in cash, plus interest, has been established. A Notice is hereby given, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Southern District of New York (the “Court”) dated March 5, 2003, that a hearing will be held before the Honorable Richard Owen in the United States Courthouse, 500 Pearl Street, New York, New York 10007, at 2:30 p.m., on May 16, 2003 (the “Settlement Fairness Hearing”) to determine whether a proposed settlement (the “Settlement”), is fair, reasonable and adequate and to consider the proposed Plan of Allocation for the Settlement proceeds and the application of Plaintiffs’ Counsel for attorneys’ fees and reimbursement of expenses.

On May 8, 2002, the Court entered the Stipulation and Order granting the motion for an order to consolidate cases no. 01 civ. 9405, 01 civ. 9296, 01 civ. 9999 and 01 civ. 10162, for all purposes related actions filed against Netease.com, Inc. pursuant to 27(a)(3)(B) of the Securities Act and 21D(a)(3)(B) of the Exchange Act. A Master Docket and Master File are hereby established, the caption of these consolidated class actions shall be "In Re Netease.com, Inc. Securities Litigation" and the files of the consolidated actions shall be maintained in one master file under Master File No. 01 civ. 9405. Pursuant to the provisions of sec. 27(a)(3)(B) of the Securities Act and sec. 21D(a)(3)(B) of the Exchange Act, the Jackson Family Trust, Zhonghui Liu and Richard Huo are appointed Lead Plaintiffs. Pursuant to sec. 27(a)(3)(B)(v) of the Securities Act and sec. 2D(a)(3)(B)(v) of the Exchange Act, the law firms of Kaplan Fox & Kilsheimber LLP, Milberg Weiss Bershad Hynes & Lerach LLP and Stull & Brody are hereby appointed Co-Lead Counsel for plaintiffs.

The original complaint filed alleges that defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between July 3, 2000 and August 31, 2001. On May 8, 2001, Netease.com disclosed that it had discovered that $1 million in contracts had been improperly reported as revenue and as a result, it would delay announcing its financial results for the first quarter of 2001. Subsequently, on June 11, 2001, the Company announced that the revenue overstatement appeared to affect its full year 2000 financial statements and the amount of the overstatement would be approximately $3 million. Then, on August 31, 2001, NetEase.com finally revealed the full extent of the overstatement. The Company announced that it would be restating all of its year 2000 financial statements because $4.3 million in revenue had been overstated. The complaint alleges that the prospectus and registration statement issued in connection with the initial public offering of NetEase.com ADSs (the "IPO") was materially false and misleading because it contained artificially inflated financial results for the first quarter of 2000. Following the IPO, defendants issued press releases announcing the Company's quarterly 2000 and full year 2000 financial results which were materially false and misleading because they overstated NetEase.com's financial performance.

Note: The class is constituted by all who purchased the American Depositary Shares ("ADSs") of NetEase.com, Inc. ("NetEase.com") during the period from and including July 3, 2000 through and including August 31, 2001 (the "Class Period"), including the ADSs of NetEase.com pursuant to or traceable to NetEase.com's Initial Public Offering (The "IPO") on or about July 3, 2000, or subsequently in the open market.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Services
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: NTES
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 01-CV-09296
JUDGE: Hon. Richard Owen
DATE FILED: 10/22/2001
CLASS PERIOD START: 07/03/2000
CLASS PERIOD END: 08/31/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brian Felgoise
    230 South Broad Street, Suite 404 , Brian Felgoise, PA 19102
    215.735.6810 215/735.5185. ·
  2. Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR)
    P.O. Box 25438, Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR), AR 72221-5438
    501.312.8500 501.312.8505 ·
  3. Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL)
    One Boca Place. 2255 Glades Road, Suite 421A, Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL), FL 33431
    561.750.3000 561.750.3364 ·
  4. Kaplan Fox & Kilsheimer, LLP (former New York, NY)
    805 Third Avenue, 22nd Floor, Kaplan Fox & Kilsheimer, LLP (former New York, NY), NY 10022
    212.687.1980 212.687.7714 · info@kaplanfox.com
  5. Kaplan Fox & Kilsheimer, LLP (San Francisco, CA)
    100 Pine Street, 26th Floor, Kaplan Fox & Kilsheimer, LLP (San Francisco, CA), CA 94111
    415.772.4700 415.677.1233 · info@kaplanfox.com
  6. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  7. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  8. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  10. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
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