LITTLE ROCK, Ark, Dec. 7, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the American Depositary Shares ("ADSs") of NetEase.com, Inc. ("NetEase.com" or the "Company") (Nasdaq:NTESE) during the period between July 3, 2000 and August 31, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.classlawyer.com/pr/netease.pdf.
The complaint alleges that defendants NetEase.com, King F. Lai, William Lei Ding, Helen Haiwen He, Merrill Lynch, Pierce, Fenner & Smith, Incorporated, Deutsche Bank Securities, Inc., Chase Securities, Inc., Salomon Smith Barney, Inc. and UBS Warburg LLC 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") were materially false and misleading because they 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.
If you bought the ADSs of NetEase.com between July 3, 2000 and August 31, 2001 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than December 21, 2001. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Charlie Gastineau P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: firstname.lastname@example.org
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca
Cauley Geller Bowman & Coates, LLP Charlie Gastineau or Sue Null, Media (888) 551-9944