COLCHESTER, Conn., Feb. 26, 2005 (PRIMEZONE) -- Scott + Scott, LLC (http://www.scott-scott.com ) announced today that it filed a securities fraud action in the United States District Court for the Southern District of New York on behalf of purchasers of 51job, Inc. securities (ADRs) (NASDAQ:JOBS) from November 4, 2004 to January 14, 2005. For more information call attorney Neil Rothstein at 800/332-2259 or e-mail at nrothstein@scott-scott.com. You can also reach him by cell phone 619/251-0887.
Other cases that Scott + Scott, LLC are currently litigating, investigating or working on include: Navarre Corp., Netflix Inc., Hypercom Corp., Taser International, Albertsons, ChoicePoint, Performance Food Group, Mamma.com Inc., OfficeMax, Input/Output, Direct General and more. Examples of the firms' recent achievements include the recent settlement of the ImClone securities litigation for $75 million, the appointment of sole lead counsel in the Commerce Bancorp Securities Litigation, the appointment of co-lead counsel in the Shell/Royal Dutch ERISA litigation and the antitrust case Matthews v. VISA U.S.A.
UPDATE:
ChoicePoint (NYSE:CPS)
It has been reported and confirmed that ChoicePoint Inc.'s top two executives made $16.6 million in insider trading from the time they learned that their database, which is used for such purposes as background checks for the purchase of guns and other such products, had been breached back in October of 2004. From November 9, 2004 until the disclosure of this security breach on February 15, 2005. Derek Smith, the CEO and Douglas Curling, the President, traded 458,600 shares of ChoicePoint stock. During this time the stock went from about $44.00 per share to almost $48.00 per share before plunging about 18% to $40.00 per share. The sales of these shares are the focus of this firm's investigation on behalf of its clients.
51job, Inc.
According to its website, 51job, Inc. is a provider of integrated human resource services in China with a focus on recruitment related services. The Company's recruitment related services are delivered in both print and online formats. These two services are closely integrated to allow it to reach a wide and diverse audience. The Internet, Web-based applications and human resource software are critical aspects of the Company's services. In addition to recruitment advertising services, the Company also provides executive search and other complementary human resource related services for large and small employers.
The complaint alleges that, during the Class Period, defendants reported the Company's operating results for the third quarter of 2004 and made positive statements regarding its outlook for the fourth quarter of 2004. In truth and in fact, however, 51job's financial statements for the third quarter of 2004 were artificially inflated as a result of the Company's premature recognition of revenue in its online services segment, which also violated Generally Accepted Accounting Principles ("GAAP") and its own revenue recognition policies. In addition, defendants knowingly or recklessly made positive statements, which were lacking in any reasonable basis, about the Company's outlook for the fourth quarter of 2004. Specifically, the Company estimated that total revenues for the fourth quarter of 2004 would be in the range of RMB140 million to RMB145 million and diluted earnings per share would be between RMB0.42 and RMB0.44. On January 18, 2005, the Company drastically cut its estimates for its revenues and earnings per share by approximately 17% and 40%, respectively. The Company now expects to earn total revenues of RMB117 and RMB121 million and earnings per common share of between RMB0.24 and RMB0.27.
On this news, the stock dropped from $43.82 per share on January 15, 2005 to $28.32 per share on January 18, 2005-or about 1/3 of its value. The stock closed for this week at $20.97. If you would like to be a shareholder client of Scott + Scott, LLC, please contact the firm and we will forward information describing the benefits of being a lead plaintiff or an active, informed absent class member. There is no charge for this service and you will not be set forth as a lead plaintiff without further consultation and consent. The motion for lead plaintiff(s) is due on March 22, 2005.
Scott + Scott, a Connecticut-based law firm with offices in Chagrin Falls, Ohio and San Diego, California, is a law firm with a national practice and reputation. The firm is currently litigating major securities, antitrust and employee retirement plan cases throughout the United States and represents pension funds, charities, foundations, individuals and other entities worldwide -- in both class and non-class cases. Scott + Scott dedicates itself to client communication and satisfaction. Please visit our website at http://www.scott-scott.com to learn more about the firm, its practice and other cases.
If you wish to discuss this action with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein at nrothstein@scott-scott.com or by calling 800/404-7770 (EST) or 800-332-2259 (PST). You can dial direct in California at 619-233-4565 or fax at 619/233-0506.
Scott + Scott, LLC is based at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432. This release is issued in accordance with the applicable U.S. federal law.