May 12, 2014 (Shareholders Foundation) - An investigation on behalf of investors of 500.com Ltd (NYSE:WBAI) shares over potential securities laws violations by 500.com Ltd and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of 500.com Ltd (NYSE:WBAI) concerning whether a series of statements by 500.com Ltd regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

500.com Ltd reported that its annual Total Revenue declined from $232.33 million in 2011 to $171.53 million in 2012 and that its respective Net Income declined from $13.56 million to $4.24 million.

Shares of 500.com Ltd (NYSE:WBAI) grew from $20.36 per share in December 2013 to as high as $51.37 per share in March 2014.

Then on May 7, 2014, a report alleged that online sports lottery sales in China are illegal without prior authorization and the China Sports Lottery Administration Center (the CSLAC) publicly stated it had not authorized any sports lottery websites. The report claimed that this directly contradicts 500.com Ltds filings with the U.S. Securities and Exchange Commission stating that it was previously approved to sell sports lottery products online on behalf of the CSLAC in China and that consequently, 500.com Ltds business may be subject to suspension.

Shares of 500.com Ltd declined to a close of $33.77 per share on May 12, 2014.