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Zynga Insider Trading Class Action Lawsuits Filed
By Mike Holter
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Zynga, Inc. has been hit with multiple class action lawsuits accusing it of insider trading and other stock fraud allegations. If you purchased Zynga stock (NASDAQ: ZNGA) between December 15, 2011 and July 25, 2012, you may be included in the proposed class action securities fraud lawsuits.
The Zynga securities class action lawsuits accuse the company and some of its officers and directors of issuing false and/or misleading statements and failing to disclose adverse facts about Zynga’s business and financial prospects during this time period.
Specifically, the Zynga insider trading lawsuits accuse Zynga of failing to disclose it was experiencing a sharp drop-off in users of its most profitable web games as well as delays in developing new games to launch on social media platforms.
As a result, on July 25, 2012, Zynga announced lower than expected earnings and lowered 2012 guidance. Upon this news, shares of Zynga stock plummeted nearly 40% to a trading low of $2.97 per share.
To make matters worse, the class action lawsuits allege that insider company officials sold millions of shares at more than $500 million in profit before cashing out right before the stock imploded.
The Zynga securities fraud lawsuits are seeking to recover damages on behalf of all purchasers of Zynga stock during the class period who suffered losses.
Were you a victim of stock fraud, securities fraud or investment fraud? You may have a case to file class action lawsuit against the parties responsible. Visit the Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation for details.
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Updated October 19th, 2012
All securities fraud class action and lawsuit news updates are listed in the Stocks & Securities section of Top Class Actions
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3 thoughts onZynga Insider Trading Class Action Lawsuits Filed
Add me
Add me please I have proof my email was compromised.
Has suit been certified as a class? Who are all defendants?
J.Q