Just a few days after another law firm filed suit against 51job.com (JOBS), now the law firm of Schatz & Nobel, P.C., announced that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the publicly traded securities of 51job between November 4, 2004 and January 14, 2005.
This new complaint alleges similar illegalities as the first. Specifically, that 51job violated United States securities laws by issuing false or misleading public statements. This complaint alleges that 51job failed to disclose the fact that it improperly recognized recruitment advertising revenue in the third quarter of 2004.
On January 18, 2005, 51job announced lower than expected sales for the latter part of the month of December 2004, the exit of the peripheral stationery and office supplies business and updated guidance for the fourth quarter of 2004. It disclosed that fourth quarter total revenues are now expected to be between CNY117 and CNY121 million, compared with CNY140 million, the low-end of its previous forecasted range.
On this news, shares of 51job fell from a close of $43.82 per share on January 14, 2005, to close at $28.32 per share on January 18, 2005, the next trading day.
