HARTFORD, Conn., Nov. 28, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all purchasers of Giant Interactive Group, Inc. ("Giant Interactive" or the "Company") (NYSE:GA) American Depositary Shares ("ADSs") pursuant and/or traceable to the Company's initial public offering (the "IPO" or the "Offering") on or about November 1, 2007 through November 19, 2007 (the "Class Period").
The Complaint charges that Giant Interactive and certain of its officers, directors and underwriters violated federal securities laws. Specifically, on or about October 31, 2007, Giant Interactive filed a Form F-1/A Registration Statement (the "Registration Statement"), for the IPO. 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 its online game ZT Online.
On November 19, 2007, Giant Interactive announced its financial results for the third quarter of 2007. 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. On November 20, 2007, Giant Interactive held a conference call and 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. On this news, on November 20, 2007, the price of Giant Interactive ADSs dropped from $14.88 per ADS to $11.10 per ADS.
If you are a member of the class, you may, no later than January 28, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.