Giant interactive facing US lawsuit

Law

29 November 2007

Giant Interactive Network, a Chinese online game company, is facing a class action lawsuit from US investors less than one month after it listed on New York Stock Exchange, Economic Observer reported (in Chinese). The US law firm Coughlin Stocia Geller Rudman & Robbins declared on Tuesday that shareholders will sue Giant for failing to disclose the decline in average and peak concurrent users of its popular online game ZT Online for the third quarter of 2007 in its IPO registration statement.  Giant Interactive listed on November 1, issuing 57 million shares and raising US$886 million. The company's stock price has dropped from US$14.88 to US$11.10 since news of the suit broke.

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