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Ragnarok Online News - Lawsuit Filed Against Gravity
Posted by Craig McGregor on May 21, 2005 | 15 comments in our forums
It was recently announced that the firm "Schatz & Nobel" filed a class action lawsuit agains Gravity Co. Ltd. - creator of the MMORPG "Ragnarok Online". In the suit they claim that Gravity issued false or misleading claims to their shareholders. This was taken from the Yahoo! business site:
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HARTFORD, Conn., May 19 /PRNewswire/ -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces 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 the purchasers of the American Depository Shares ("ADSs") of Gravity Co., Ltd. (Nasdaq: GRVY - News; "Gravity") pursuant and/or traceable to Gravity's Registration Statement/Prospectus issued in connection with its February 7, 2005 initial public offering of ADSs (the "IPO"), together with those who purchased shares in the open market between February 7, 2005 and May 12, 2005 (the "Class Period"). The Complaint alleges that Gravity violated federal securities laws by issuing false or misleading public statements. Specifically, the Complaint alleges that the Registration Statement/Prospectus included positive statements concerning Gravity's growth prospects and demand for its products when, in fact, there was declining demand for its main product, Ragnarok -- Online; its mobile animation business was in decline; and its China operations were in peril. On May 12, 2005, Gravity announced that its financial results for the first quarter of 2005 were lower than expected. On this news, Gravity's ADSs fell from a close of $9.24 per share on May 12, 2005, to close at $5.60 per share on May 13, 2005. |
To read the full story, click here.
sweet
Lol @ gravity.
lmao....
Gravity is not such bastard company anymore...this is sad though..
They are basically suing gravity because gravity made a prediction....it's stupid. This isn't good, it would only fuel korean company's more to not care about customer service to americans, or putting anything of great quality out here.
It's all just stupid...I mean seriously how many Americans Exploit mmo's from asia? Now we sue them for making a false statment.
Who is more greedy now?
I don't know, don't know and don't really care about Gravity in general, but the suit reads like this to me:
"We invested money in stocks and didn't do research and took the word of the company at face value. Because of that, we should be guaranteed our stocks would make money."
That's just wrong. Who ever guaranteed stock values?
Owned.
Well, not researching is one thing... and the investors should have been more intelligent, to be sure.
However, if the company actively deceived potential investors, well... that's a problem. I guess that's what the lawsuit is all about.
This sort of thing happens all the time in other businesses, I guess it's about time it happened to a gaming company.
What makes these sorts of suits difficult is... where do you draw the line between being deceptive and just being optimistic? No doubt the communications between the company and the investors will be throuroughly scrutinized and compared with internal communications. Anything that doesn't jibe will cause big problems. For example, if internally they forecast an income of X, but tell their investors that they forecast 2X, then they're guilty of being misleading.
In all likelihood, we'll never know, because the lawsuit will probably either be dropped or settled.
Before investing in a game stock why not talk to a gamer or two? Its called research and it means not just going "wheeee ive got money who wants it?" Gravity has never been more than a niche game provider, investing in them just was a bad idea.
I wonder who is behind all this and sueing Ragnarok...
Prolly a ''competing MMORPG''. The stock action thingy is prolly only a facade. Someone should make a research to see who own the pursers, the list of their customers and who own those customers and so on.
Of course maybe I am wrong, but somehow, this doesnt feel like a real story to me...Ragnarok is not a $ grabbing company, never have been, and I doubt they are in whatever fraud willingly...so it is logical to assume the pursers have been ''hired'' to smash a little company...not that I want to give names on who smash little companies, but quite a few MMORPGs makers have been known to smash small companies, lawsuit them or do even worser.
Ragnarok is just now pushing more paid-online time then beta online time. Gravity used to be a horrible company, but they got everything together now. If the worst of the foreign MMORPG Developers see that Ragnarok goes down because of some american bullshit lawsuit, this might hurt plans for other mmorpgs of comeing over here...
Lets hope they get a judge who isnt a dumbass and drops this case.
"included positive statements concerning Gravity's growth prospects and demand for its products when, in fact, there was declining demand for its main product, Ragnarok.."
Have you ever seen a company issue a statement saying that subscribers were decling? The jackal lawyers are just rying to make a buck.
Ragnarok is predicting growth by trying to pull back old customers since they have the updates they promissed users two years ago, they think everyone will pull back and forgive them..
I myself feel an urge to play now, with all the new classes out.
Its a law firm that is smelling money in the air (direct translation might not sound good in english) so they (lawfirm) are looking for stock owners that want to sue. Gravity messed up by promising in writing that it (RO) will be even more popular, doesnt say what kinda writing so it might be usefull in court or not (here Gravitys engrish will come in handy most likely .
)