San Diego, Oct. 03, 2011 (Shareholders Foundation) -- An investigation on behalf of investors in shares of Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA) over possible Violations of Federal Securities Laws was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Shanda Interactive Entertainment ADR (SNDA) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements regarding Shanda Interactive Entertainments business, its prospects and its operations were potentially materially false and misleading at the time they were made.

The investigation follows media reports that said the U.S. Department of Justice (DOJ) is assisting a U.S. Securities and Exchange Commission (SEC) probe of possible accounting irregularities among unnamed U.S.-listed Chinese firms. The investigation by a law firm for investors focuses several Chinese internet companies, including but not limited to Shanda Interactive Entertainment Ltd.

Shanda Interactive Entertainment Ltd ADR reported an increase in its annual Total Revenue from $2.46billion in 2007 to $5.57billion in 2010. However, its Net Income fell from $1.26billion in 2007, respectively $1.59billlion in 09 to $617.15million in 2010. Additionally, even though Shanda Interactive Entertainments first quarter Revenue rose from $1.29billion last year to $1.63billion this year, its first quarter Net Income fell from $222.80million last year to $85.50million this year.

Shares of Shanda Interactive Entertainment Ltd ADR (Public, NASDAQ:SNDA) grew from as low as $21.46 per share in the End of 2008 to over $62 per share in June 2009. Even though NASDAQ: SNDA shares traded in 2010 for the most part over $40 per share and peaked in the first months in 2011 at almost $50, SNDA stocks fell to under $30 on October 3, 2011.