SOURCE: Izard Nobel LLP

October 23, 2009 14:24 ET

Izard Nobel LLP Announces Class Action Lawsuit Against The9, Ltd.

WEST HARTFORD, CT--(Marketwire - October 23, 2009) - The law firm of Izard Nobel LLP, 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 purchasers of American Depositary Shares ("ADSs") of The9, Ltd. ("The9" or the "Company") (NASDAQ: NCTY) between November 15, 2006 and July 15, 2009 (the "Class Period").

The complaint charges that The9 and certain of its directors and officers violated federal securities laws. The complaint further alleges that defendants failed to disclose the following: (i) it was becoming increasingly less likely that The9 would be renewing the World of Witchcraft ("WoW") contract with Blizzard; (ii) The9 had not even begun formal negotiations with Blizzard regarding contract renewal; (iii) The9 and Blizzard had been at odds regarding The9's operation of WoW in China; and (iv) the equity investment by EA Sports Online in The9 had made it less likely that Blizzard would renew the WoW contract because Blizzard would essentially be doing business with one of its greatest competitors.

On July 15, 2009, The9 reported a $36.9 million reduction in net income for 2008. Moreover, The9 admitted that it had not even begun negotiations with Blizzard concerning the renewal of the WoW contract as of the date that it had previously represented to investors. On this news, shares of The9's stock dropped 18% to $8.34.

If you are a member of the class, you may, no later than December 21, 2009, 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.

While Izard Nobel LLP 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, and your rights, visit: www.izardnobel.com/the9/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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