Friday, October 19, 2012
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. 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.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.
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