A class action has been filed against 51job, Inc. (NASDAQ: JOBS), a China based recruitment and human resource services company and certain of its officers and directors by stockholders who purchased the company's common stock between November 4th, 2004 and January 14th, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

According to a press release dated January 21, 2005, a class action lawsuit was filed on behalf of all securities purchasers of 51job, Inc. The complaint charges 51job and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company improperly recognized recruitment advertising revenue in the third quarter; (2) that the Company, a purported expert in Chinese labor markets, failed to realize that the drop in late- December advertising suggested that many Chinese firms have adopted a more Western schedule for hiring; (3) that as a result of this market shift, the Company was forced to sharply lower its profit outlook; and (4) that as a consequence of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company's growth and progress.

Further, on or around January 18, 2005, before the market opened, 51job announced softness in sales for the latter part of the month of December 2004, the exit of the peripheral stationery and office supplies business and updated guidance for the fourth quarter of 2004. The Company expected fourth quarter total revenues to be between RMB117 and RMB121 million, compared with RMB140 million, the low-end of its previous forecasted range. The news shocked the market. As a result, shares of 51job fell $15.49 per share, or 35.37 percent, on January 18, 2005, to close at $28.32 per share, on unusually high volume.

If you bought 51job, Inc. securities between November 4th, 2004 and January 14th, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.