Zynga Inc (NASDAQ:ZNGA) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
July 31, 2012 (Shareholders Foundation) -- An investor in shares of Zynga Inc (NASDAQ:ZNGA) filed a lawsuit in the U.S. District Court for the Northern District of California against Zynga, Inc. over alleged violations of Federal Securities Laws in connection with certain financial statements.
According to the complaint the plaintiff alleges on behalf of purchasers of the common stock of Zynga, Inc. (NASDAQ: ZNGA) between December 16, 2011 and July 25, 2012, including those investors who acquired Zynga, Inc. (NASDAQ: ZNGA) stock pursuant to and/or traceable to its secondary stock offering, that the defendants violated the Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10(b)(5) promulgated thereunder.
Specifically, the plaintiff alleges that the defendants issued allegedly false and misleading statements and omissions, including a false and misleading Registration Statement and Prospectus in connection with Zynga’s secondary offering, about its business, operations, and growth prospects.
Zynga Inc (NASDAQ:ZNGA) reported that its annual Revenue skyrocketed from $19.41million in 2008 to $1.14billion in 2011. Shares of Zynga Inc (NASDAQ:ZNGA) grew from $9.50 in December 2011 to as high as $14.69 per share in March 2, 2012.
Then on July 25, 2012, Zynga Inc (NASDAQ:ZNGA) reported its second quarter 2012 financial results. Among other things, Zynga Inc announced a net loss of $22.8 million for the second quarter of 2012. In addition, Zynga Inc announced that it is lowering its outlook for 2012.
Shares of Zynga Inc (NASDAQ:ZNGA) dropped from $5.078 per share on July 25, 2012, to $3.02 per share on July 26, 2012.
On July 31, 2012. NASDAQ:ZNGA shares closed at $2.95 per share.