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    • Wed Dec 26th 21:56 PM | Rating: 0 0
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      China Gaming: Giant Interactive Cannot Be Ignored
      Abraham Fruchter & Twersky LLP Files Class Action Lawsuit Against Giant Interactive Group, Inc.
      Tuesday November 27, 3:44 pm ET
      NEW YORK, NY--(MARKET WIRE)--Nov 27, 2007 -- Abraham Fruchter & Twersky LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of Giant Interactive Group, Inc. ("Giant Interactive" or the "Company") (GA - News) American Depositary Shares ("ADSs") pursuant and/or traceable to the Company's initial public offering ("IPO") on or about November 1, 2007 through November 19, 2007 (the "Class Period").

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      The complaint charges Giant Interactive and certain of its officers and directors with violations of the Securities Act of 1933. Giant Interactive develops and operates online games in the People's Republic of China. The Company's primary game is ZT Online which is a free-to-play massive multi-player online ("MMO") game.
      According to the complaint, on or about October 31, 2007, Giant Interactive filed with the Securities and Exchange Commission ("SEC") a Form F-1/A Registration Statement (the "Registration Statement"), for the IPO. On or about November 1, 2007, the Prospectus (the "Prospectus"... with respect to the IPO, which forms part of the Registration Statement, became effective and, including the exercise of the over-allotment, more than 57 million shares of Giant Interactive's ADSs at $15.50 per ADS were sold to the public, thereby raising more than $886 million. 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 ZT Online.

      On November 19, 2007, after the close of the market, Giant Interactive issued a press release announcing its financial results for the third quarter of 2007, the period ending September 30, 2007. Among other things, 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. Then, on November 20, 2007, before the market opened, Giant Interactive held a conference call with analysts and investors to review the Company's earnings release. During the conference call, Giant Interactive 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. Following the Company's earnings release and conference call, on November 20, 2007, the price of Giant Interactive ADSs dropped from $14.88 per ADS to $11.10 per ADS on extremely heavy trading volume.

      Plaintiff is represented by Abraham Fruchter & Twersky LLP, which has expertise in prosecuting investor class actions. If you wish to serve as lead plaintiff, you must move the Court within sixty days of November 26, 2007. To serve as lead plaintiff, you must meet certain legal requirements set forth in the applicable law and file appropriate papers with the Court. You do not need to seek appointment as a lead plaintiff in order to share in any recovery. Under certain circumstances, one or more Class members may together serve as lead plaintiff. You may retain Abraham Fruchter & Twersky LLP, or other counsel of your choice, to serve as your counsel in this action or you may choose to do nothing and remain an absent class member.

      If you have any questions concerning this case or your rights or interests with respect to this matter, please contact plaintiffs' counsel: Jack Fruchter or Ximena Skovron of Abraham Fruchter & Twersky LLP, One Penn Plaza, Suite 2805, New York, New York 10119, by telephone at (212) 279-5050, by facsimile at (212) 279-3655, or by e-mail at jfruchter@aftlaw.com or xskovron@aftlaw.com.


      Contact:
      Contact: Jack Fruchter Email Contact Ximena Skovron Email Contact Abraham Fruchter & Twersky LLP (212) 279-5050 facsimile (212) 279-3655
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