SEOUL, Korea, June 11, 2007 (PRIME NEWSWIRE) -- Gravity Co., Ltd. (Nasdaq:GRVY) (The "Company"), an online game developer and publisher, announced that it and other defendants have reached an agreement in principle to settle the class action litigation brought on behalf of purchasers of the Company's securities which is pending in the United States District Court for the Southern District of New York as In re Gravity Co., Ltd. Securities Litigation, No. 1:05-CV-04804-LAP.
Under the proposed settlement, a fund of U.S. $10 million will be created to settle the claims of a class consisting of persons who purchased American Depository Shares of the Company during the period from February 7, 2005 through November 10, 2005, inclusive. The Company's share of the settlement fund will be U.S. $5 million. Costs of administering the settlement, as well as Plaintiffs' attorneys' fees and expenses (which have not yet been determined) will be paid out of the settlement fund before distributions are made to class members. In exchange, the Company, its current and former directors and officers as well as other third parties will be released from liability for the claims asserted by the class.
The Company has denied and continues to deny any and all allegations of wrongdoing in connection with this matter, but believes that given the uncertainties and costs associated with the litigation, the settlement is in the best interests of the Company and its shareholders.
II Young Ryu, Chairman and Chief Executive Officer of Gravity, commented: "It is important that we put this unfortunate event behind us so we can focus on continuing to build our business and focus on our prospects for growth. This settlement is a milestone towards that effort."
The proposed settlement is conditioned, among other things, on various conditions being met and final court approval after notice to the plaintiff class and expiration of the time for appeal from any order of the court approving the settlement. There can be no assurance that the final settlement will be obtained.
About Gravity Co., Ltd.
Based in Korea, Gravity is a developer and publisher of online games. Gravity's principal product, Ragnarok Online(tm), is a popular online game in many markets, including Japan, Taiwan and Thailand, and is currently commercially offered in 48 markets. For more information, please visit http://www.gravity.co.kr.
Forward-Looking Statements:
Certain statements in this press release may include, in addition to historical information, "forward-looking statements" within the meaning of the "safe-harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" "project," or "continue" or the negative thereof or other similar words, although not all forward-looking statements will contain these words. Investors should consider the information contained in our submissions and filings with the United States Securities and Exchange Commission (the "SEC"), including our registration statement on Form F-1, as amended, and our 2005 annual report on Form 20-F, together with such other documents and we may submit to or file with the SEC from time to time, including on Form 6-K. The forward-looking statements speak only as of this press release and we assume no duty to update them to reflect new, changing or unanticipated events or circumstances.
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