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SOURCE: Statman Harris & Eyrich LLC
The law firm of Statman, Harris & Eyrich, LLC announces that it is investigating potential violations of federal securities laws and breaches of fiduciary duty by Zynga, Inc. (“Zynga” or the “Company”) and certain of its officers and directors.
Cincinnati, Ohio (PRWEB) July 29, 2012
The law firm of Statman, Harris & Eyrich, LLC announces that it is investigating potential violations of federal securities laws and breaches of fiduciary duty by Zynga, Inc. (“Zynga” or the “Company”) and certain of its officers and directors. Zynga, located in San Francisco, California, develops, markets and operates online social games as live services played over the Internet and on social networking sites and mobile platforms. The investigation is being conducted on behalf of investors who purchased shares of the Company between December 16, 2011 and July 25, 2012 (the “Investigation Period”). Our firm’s investigation focuses on whether the Company failed to disclose material adverse facts about its business and financial condition.
According to financial results posted on its website July 25, 2012, the Company experienced a net loss of $22.8 million for the second quarter, lower than expected earnings estimates, and lowered its 2012 outlook to “reflect delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something.” Investors.com reported July 25th that shares were down more than 37% after hours Wednesday following Zynga’s report, from a close of $5.078 on July 25th to $3.06 per share. Additionally, the investigation is looking into the timing of sales of stock in early April by Zynga’s executive officers pursuant to the Company’s secondary stock offering announced on March 28, 2012, wherein the executives reportedly sold nearly 43 million shares at a price of $12.00 per share.
Shareholders of Zynga during the Investigation Period who wish to discuss this investigation are encouraged to contact attorney Brian Giles at (513) 345-8181 or at classaction(at)statmanharris(dot)com for further information without any obligation or cost to you.
Additionally, persons with non-public knowledge relative to the allegations asserted are encouraged to contact the law firm. The whistleblower provisions in the Dodd-Frank Wall Street Reform Bill protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
Statman, Harris & Eyrich, LLC, which has significant experience in consumer and securities fraud class actions and derivative litigation, has offices in Chicago, Illinois; Cincinnati, Ohio; Dayton, Ohio; and Sarasota, Florida. http://www.statmanharris.com Attorney advertising. Prior results do not guarantee similar outcomes.
Statman, Harris & Eyrich, LLC
Brian Giles, Esq.
441 Vine Street, Suite 3700
Cincinnati, Ohio 45202
Phone: (513) 345-8181
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