Giant Interactive Reaches $13M Deal Over IPO Disclosures

Law360, New York (July 28, 2011, 1:41 PM EDT) -- Giant Interactive Group Inc. said Wednesday it had struck a $13 million settlement to end a class action in New York accusing the China-based online game developer of failing to disclose material information prior to its $886 million initial public offering.

The consolidated class action, filed in 2008, claims Giant neglected to warn investors of a problem known as gold farming — a practice in which companies hire people to play online games to generate cybercurrency that can be sold on third-party websites for real cash....
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