Milberg Weiss announces the filing of a class action suit against 51job Inc

Milberg Weiss Announces The Filing Of A Class Action Suit Against 51job Inc., And Certain Of Its Officers and Directors On Behalf of Investors

The law firm of Milberg Weiss Bershad & Schulman LLP announces that a class action lawsuit was filed on January 28, 2005, on behalf of purchasers of the securities of 51job, Inc. (51job or the Company) (Nasdaq: JOBS) between November 4, 2004 and January 14, 2005, inclusive, (the Class Period) seeking to pursue remedies under the Securities Exchange Act of 1934 (the Exchange Act).


If you bought the securities of 51job between November 4, 2004 and January 14, 2005, and sustained damages, you may, no later than March 22, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.

The action, numbered 05-CV-0974, is pending in the United States District Court for the Southern District of New York against defendants 51job, Rick Yan (CEO, Pres.), Kathleen Chien (CFO), and Donald L. Lucas (Chairman).

The complaint alleges that throughout the Class Period, defendants made highly positive statements concerning its business and reported to the market that its business would continue to accelerate, issuing highly positive earnings and revenue projections. Such statements were allegedly false and misleading when made for the following reasons:

1. the Company improperly recognized advertising revenue, such that its real revenues in the third fiscal quarter were materially less than the RMB135.0 million (US$16.3 million) in total revenues and RMB128.1 million (US$15.5 million) that the Company reported in its press release;

2. defendants failed to disclose that the Company’s business was experiencing a material downturn in advertising revenue;

3. the Company failed to adjust its aggressively positive earnings announcements even in light of the sharp downturn in business, which was well known to defendants;

4. as a result of the foregoing, 51job’s Class Period statements about the Company’s historical results and expected growth were lacking in any basis and deceived investors.

The truth began to be revealed on January 18, 2005. On that date, before the market opened, 51job issued a press release announcing that sales declined in December 2004 and lowered its guidance for the fourth quarter of 2004. In addition, defendants announced that 51job would revise its third quarter online recruitment advertising revenue, reducing it by RMB2 million to RMB3 million.

In response to these disclosures, the price of 51job shares plummeted, falling from $43.82 per share on January 15, 2005 to $28.32 per share on January 18, 2005, the next trading day, a one-day drop of 35%, on unusually heavy trading volume of 7.4 million shares.

Milberg Weiss Bershad & Schulman LLP is a firm with over 100 lawyers with offices in New York City, Los Angeles, Boca Raton, Delaware, Seattle and Washington, D.C. and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for nearly 40 years. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys: