500.com Limited
| Company Name | 500.com Limited |
| Stock Symbol | WBAI |
| Class Period | April 27, 2018 to December 31, 2019 |
| Lead Plaintiff Motion Deadline | March 16, 2020 |
On December 31, 2019, the Company disclosed an internal investigation regarding alleged illegal money transfers after one of its former directors was arrested. 500.com also announced that its Chairman of the Board of Directors resigned and that its Chief Executive Officer would “step aside” from his position until the investigation concluded.
On this news, the Company’s share price fell $1.07, or over 12%, to close at $7.52 per share on January 2, 2020, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that 500.com executives and consultants engaged in a bribery scheme with Japanese officials in an effort to gain favor in a bid to run an upcoming Japanese casino resort; (2) that consequently, 500.com was in violation of Japanese anti-bribery laws and its Code of Ethics; and (3) that as a result, defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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