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.