LITTLE ROCK, Ark., Feb. 4, 2005 (PRIMEZONE) -- Emerson Poynter LLP (www.emersonpoynter.com), a national law firm with offices in Houston, Little Rock and Seattle, announced today that it has filed in the United States District Court for the Southern District of New York on behalf of purchasers of 51job, Inc. ("51job" or the "Company") (Nasdaq:JOBS) between November 4, 2004 and January 14, 2005, inclusive, (the "Class Period") seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
The complaint alleges that throughout the Class Period, defendants made highly positive statements concerning its business and reported to the market that its business would continue to accelerate, issuing highly positive earnings and revenue projections. Such statements were allegedly false and misleading when made for the following reasons: (a) the Company improperly recognized advertising revenue, such that its real revenues in the third fiscal quarter were materially less than the RMB135.0 million (US$16.3 million) in total revenues and RMB128.1 million (US$15.5 million) that the Company reported in its press release; (b) defendants failed to disclose that the Company's business was experiencing a material downturn in advertising revenue; (c) the Company failed to adjust its aggressively positive earnings announcements even in light of the sharp downturn in business, which was well known to defendants; (d) as a result of the foregoing, 51job's Class Period statements about the Company's historical results and expected growth were lacking in any basis and deceived investors. The truth began to be revealed on January 18, 2005. On that date, before the market opened, 51job issued a press release announcing that sales declined in December 2004 and lowered its guidance for the fourth quarter of 2004. In addition, defendants announced that 51job would revise its third quarter online recruitment advertising revenue, reducing it by RMB2 million to RMB3 million.
In response to these disclosures, the price of 51job shares plummeted, falling from $43.82 per share on January 15, 2005 to $28.32 per share on January 18, 2005, the next trading day, a one-day drop of 35%, on unusually heavy trading volume of 7.4 million shares.
If you purchased or otherwise acquired the common securities during the Class Period you may, no later than March 22, 2005 move the Court to appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported 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. You may retain Emerson Poynter LLP or other counsel of your choice.
Emerson Poynter LLP has substantial experience representing shareholders and investors in complex class action litigation and retirement plan participants in "ERISA" cases all over the country. A complete firm resume is posted on out website (www.emersonpoynter.com).
If you are a member of the Class please contact Emerson Poynter LLP. You may contact our shareholder relations department via email (epllp@emersonpoynter.com) or by calling 1-800-663-9817.