SAN DIEGO--(BUSINESS WIRE)--Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of the federal securities laws by 500.com Limited (NYSE: WBAI) and certain of its officers. 500.com provides online sports lottery services in the Peoples Republic of China. It operates as an aggregator and processor of lottery purchase orders from its registered user accounts.
Specifically, Johnson & Weaver’s investigation seeks to determine whether certain statements regarding 500.com’s business, prospects and its suppliers were false and misleading when made.
On November 22, 2013, 500.com stock opened for trading at $20.00, the day the Company sold 6.7 million shares of stock in its initial public stock offering, reaching a high of $22.04 per share. On March 27, 2014, 500.com stock reached a high of $54.00. Since the stock’s all time high, 500.com shares have plummeted to $9.55 in mid-morning trading on February 25, 2015. The precipitous stock decline follows a series of damaging reports.
Specifically, Johnson & Weaver’s investigation will seek to determine if 500.com misrepresented its authorization by China’s Sports Lottery Administration Center to sell sports-related lottery tickets online. Additionally, Carson Block of Muddy Waters LLC reported, among other concerns, that 500.com had been playing the lottery themselves and actually won $2 million from playing the lottery in 2013 (50% of pretax income and employee bank accounts were used to collect winnings).
If you have information that could assist in this investigation, or if you are a 500.com shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (email@example.com) by email or by phone at 619-814-4471. If emailing, please include a phone number where you can be reached.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.