| Company: | 51job, Inc. |
| Ticker Symbol: | NASD: JOBS |
| Class Period: | November 4, 2004 to January 14, 2005 |
| Date Filed: | Jan-21-05 |
| Lead Plaintiff Deadline: | Mar-22-05 |
| Court: | Southern District, NY |
| Allegations: |
A class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all securities purchasers of 51job, Inc. (Nasdaq: JOBS - News; "51job" or the "Company") between November 4, 2004 and January 14, 2005, inclusive (the "Class Period").
The complaint charges 51job, Donald Lucas, Rick Yan and Kathleen Chien with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company improperly recognized recruitment advertising revenue in the third quarter; (2) that the Company, a purported expert in Chinese labor markets, failed to realize that the drop in late- December advertising suggested that many Chinese firms have adopted a more Western schedule for hiring; (3) that as a result of this market shift, the Company was forced to sharply lower its profit outlook; and (4) that as a consequence of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company's growth and progress.
On January 18, 2005, before the market opened, 51job announced softness in sales for the latter part of the month of December 2004, the exit of the peripheral stationery and office supplies business and updated guidance for the fourth quarter of 2004. The Company expected fourth quarter total revenues to be between RMB117 and RMB121 million, compared with RMB140 million, the low-end of its previous forecasted range. The news shocked the market. Shares of 51job fell $15.49 per share, or 35.37 percent, on January 18, 2005, to close at $28.32 per share, on unusually high volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges 51job, Donald Lucas, Rick Yan and Kathleen Chien with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company improperly recognized recruitment advertising revenue in the third quarter; (2) that the Company, a purported expert in Chinese labor markets, failed to realize that the drop in late- December advertising suggested that many Chinese firms have adopted a more Western schedule for hiring; (3) that as a result of this market shift, the Company was forced to sharply lower its profit outlook; and (4) that as a consequence of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company's growth and progress.
On January 18, 2005, before the market opened, 51job announced softness in sales for the latter part of the month of December 2004, the exit of the peripheral stationery and office supplies business and updated guidance for the fourth quarter of 2004. The Company expected fourth quarter total revenues to be between RMB117 and RMB121 million, compared with RMB140 million, the low-end of its previous forecasted range. The news shocked the market. Shares of 51job fell $15.49 per share, or 35.37 percent, on January 18, 2005, to close at $28.32 per share, on unusually high volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Register your Case
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If you are a current or former employee of this company, and have 401(k) shares, please use this form to register your complaint. Thank you.
