Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against 500.com Limited


NEW YORK, March 2, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the securities of 500.com Limited ("500.com" or the "Company") (NYSE:WBAI) pursuant and/or traceable to the Company's IPO on or about November 22, 2013 and between November 22, 2013 and February 25, 2015 (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").

The Complaint alleges that the Company issued materially false and misleading statements to investors by failing to disclose the risk of provincial sports lottery administration centers voluntarily suspending the acceptance of online purchase orders for lottery products. On May 7, 2014, Jinghua Daily published an article revealing that the China Welfare Lottery Administration Center and CSLAC both said that they have never authorized any website or agency to conduct online lottery sales to date and all online lottery sales are illegal. On this news, shares of the Company fell $5.07 per share or over 15% from its previous closing price to close at $28.61 per share on May 7, 2015.

Further, the Complaint alleges that on January 17, 2015, Sina.com published an article reporting that the certain Chinese governmental authorities issued a notice requiring provincial agencies to conduct self-inspection with regards to unauthorized online lottery sales. On this news, shares of the Company fell $0.60 per share from its previous closing price to close at $17.52 per share on January 20, 2015, further damaging investors. Moreover, the Complaint alleges that on February 25, 2015 the Company announced that certain provincial sports lottery administration centers to which the Company provides sport lottery sales services plan to temporarily suspend accepting online purchase orders for lottery products, in response to a notice issued by governmental authorities. On this news, shares of the Company fell $2.87 per share or over 22% to close at $9.96 per share on February 25, 2015.

If you wish to serve as lead plaintiff, you must move the Court no later than April 28, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

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