LOS ANGELES, May 27, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons or entities who purchased American Depository Shares (ADSs) of Gravity Co., Ltd. ("Gravity" or the "Company") (Nasdaq:GRVY) pursuant and/or traceable to the Company's false and misleading Registration Statement /Prospectus issued in connection with the initial public offering of Gravity ADSs (the "IPO"), together with those who purchased their shares in the open market between February 7, 2005 and May 12, 2005 inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Gravity and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations artificially inflated the Company's stock price, inflicting damages on investors. Gravity is a Korean corporation headquartered in Seoul, South Korea, that develops and distributes online games and related businesses within Korea and other countries within Asia, the United States and Europe. The Company's principal product, Ragnarok Online, is commercially available in 19 markets. Historically, revenues from Ragnarok Online have accounted for the majority of the Company's revenue, with 95% of the Company's revenue prior to the IPO attributable to that product.
The Complaint alleges defendants failed to disclose and misrepresented material adverse facts, including that: (1) Ragnarok Online was experiencing a material decline in customer demand and increased competition in the marketplace, which caused Ragnarok Online's revenues to precipitously decline; (2) Gravity's mobile animation business was in such a dire state that it was no longer capable of producing a viable revenue stream for the Company; and (3) the Company's statements about massive growth potential for online gaming were lacking in any reasonable basis when made because Gravity's royalties and license fees (for online gaming) were negatively impacted by adverse trends in China which caused, among other things, a decline of Ragnarok Online revenues.
On May 12, 2005, the Company announced disappointing financial results for first-quarter 2005 which shocked the market, causing Gravity's share price to plummet $3.64 per share - more than 39% - to close at $5.60 per share on May 13, 2005.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than July 18, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.