SOURCE: Kendall Law Group

Kendall Law Group

October 23, 2009 12:09 ET

Kendall Law Group Announces Securities Class Action Against The9, Ltd. (NASDAQ: NCTY)

DALLAS, TX--(Marketwire - October 23, 2009) - Kendall Law Group, led by a former federal judge, today announced that a lawsuit has been filed against The9, Ltd. (NASDAQ: NCTY) for securities violations related to public statements made by the company between November 15, 2006 and July 15, 2009.

The complaint, filed in the Southern District of New York, charges The9 and certain of its officers and directors with violations of the federal securities laws. The9 and its affiliates operate licensed massively multiplayer online role-playing games. According to the complaint, defendants made inaccurate statements of material fact by failing to disclose that it was unlikely that the company would be renewing the World of Warcraft contract with Blizzard. The9 had not even begun formal negotiations regarding the contract renewal and had been at odds with Blizzard due to The9's dealings with EA, one of Blizzard's biggest competitors.

On July 15, 2009, The9 reported at $36.9 million reduction in net income for 2008, which was a decrease of 72% from the $51.1 million in net income reported for that period in February of 2009. The9 also admitted at this time that they had failed to begin negotiations of the World of Warcraft contract renewal with Blizzard, as it had reported to investors. On this news, shares declined by 18% to $8.34.

Any shareholder, who purchased American Depositary Shares of The9 during the above time period, may move the Court to serve as a plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by December 20, 2009. A lead plaintiff is a class member who acts on behalf of other class members in directing the litigation. Your ability to share in any recovery is not, affected by the decision to serve as a lead plaintiff. Any member of the class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

Led by a former federal judge and former U.S. Attorney, Kendall Law Group has the credentials to pursue any type of complex securities litigation in the nation. If you wish to learn more about your rights as a shareholder, contact attorney Hamilton Lindley at 877-744-3728 or hlindley@kendalllawgroup.com.

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