NYSE
WBAI

500.com Limited

Shareholder Securities Fraud Litigation

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against 500.com Limited (NYSE: WBAI)

Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint 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 common stock of 500.com Limited (“500.com” or the “Company”) (NYSE: WBAI) between November 22, 2013 and February 25, 2015, inclusive, including those investors who acquired 500.com shares pursuant or traceable to its initial public offering (“IPO”) commenced on November 22, 2013 (collectively, the “Class Period”), alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of 500.com during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com.

The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects.  Specifically, 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.  As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on May 7, 2014, Jinghua Daily published an article revealing that the China Welfare Lottery Administration Center and China Sports Lottery Administration Center 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 500.com fell $5.07 per share or over 15% from its previous closing price to close at $28.61 per share on May 7, 2015.

Then, 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 500.com fell $0.60 per share from its previous closing price to close at $17.52 per share on January 20, 2015, further damaging investors.

Finally, on February 25, 2015, 500.com 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 500.com fell $2.87 per share or over 22% to close at $9.96 per share on February 25, 2015, further damaging investors.

If you wish to serve as lead plaintiff, you must move the Court no later than April 28, 2014.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the proposed 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.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

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