US Law Firm Submitted Class-Action Lawsuit Regarding Japanese Incident

IR Integration Resort has been one of the most popular topics in Japan for a while. There are a lot of allegations regarding the project and who will take responsibility for the construction and operation. The story around the Resort has gotten such extent that some firms paid a bribe to local politicians to guarantee privileged position among competitors. However, time has shown that the previous model was wrong and now the firm looks to save its reputation by firing its chairman and CEO. The final word will be on the court as a US law firm has already sued the company…

More About Case

US-based Block & Leviton LLP Law Firm has just filed a lawsuit against 500.com operator in U.S. District Court, US firm are further strengthened by the public acknowledgment of the operator of an internal investigation.

Block & Leviton LLP Law Firm has announced that anyone that bought or acquired stock in 500.com in the period from April 27, 2018, to December 31, 2019 (when 500.com unveiled its investigation) is entitled to participate in the lawsuit. Attorney Mark Delaney said:

“These allegations of corruption are very serious and our investigation will focus on whether the illegal activity occurred which resulted in investor losses.”

Upon the completion of the case, those who ed the lawsuit are subject to cash. The company discloses:

“Block & Leviton LLP was recently ranked 4th among securities litigation firms by ISS for recoveries in 2017. The firm represents many of the nation’s largest institutional investors and numerous individual investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for its clients.”

China Firm Allegations

Reacting to ongoing claims, 500.com has unveiled that it appointed a law firm out of Hong Kong, King & Wood Mallesons LL for its legal advisor. The firm will have the task to “assist with the internal investigation into the role played by the company’s former external consultants in the alleged illegal money transfers following their arrest by the Tokyo District Public Prosecutors Office.”

At the moment, China’s company has ongoing issues on several levels which could affect its reputation on a long-term basis. Apart from being included in the bribery scandal, 500.com didn’t renew its license in Sweden which could result in losing its gambling operation in this Nordic country. Additionally, the stock value of the company has dropped from $9.45 to $7.96 over the last month.

Source:

“Class-action lawsuit filed in the US over Japanese bribery scandal”, calvinayre.com, January 17, 2020.