Gravity is in Deep *^^*
Two paragraphs quoted from one of the many articles found here:NEW YORK, June 2, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all securities purchasers of Gravity Co., Ltd. ("Gravity'' or "the company'') between February 7, 2005 and May 12, 2005, inclusive. The Complaint charges Gravity and certain of the Company's executive officers with violations of federal securities laws by issuing materially false and misleading financial statements to the investing public that caused the price of the Company's stock to be artificially inflated.
The Complaint alleges defendants failed to disclose and misrepresented material adverse facts, including that: (a) Ragnarok Online was experiencing a material decline in customer demand and increased competition in the marketplace, which caused Ragnarok Online's revenues to steeply decline; (b) 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 (c) the Company's statements about substantial 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 unfavorable trends in China which caused a decline of Ragnarok Online revenues.
Too wordy?
Summary for the above two paragraphs: A class action lawsuit was filed in New York on behalf of those who purchased shares of Gravity Co. The lawsuit claims that shareholders have made a loss because of inaccurate information Gravity gave.
I don't know if I read this right (despite having studied company law for one semester before, oh-so-long-ago), but I think Gravity would have to cough up some compensation this time.
Tecnhorati Tags: r.o.s.e, r.o.s.e online, mmorpg, rose online, games, gaming
posted by TKY @ 1:46 AM
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