Press release from Business Wire
Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against Zynga Inc.
Friday, August 03, 2012
Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against Zynga Inc.21:30 EDT Friday, August 03, 2012 LOS ANGELES (Business Wire) -- Glancy Binkow & Goldberg LLP, representing investors of Zynga Inc. (“Zynga” or the “Company”) (NASDAQ:ZNGA), announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of a class (the “Class”) consisting of all persons or entities who purchased Zynga securities between April 3, 2012 and July 25, 2012, inclusive (the “Class Period”). A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, or by email at email@example.com. Zynga provides social game services, accessed principally via the facebook.com website. It generates revenue primarily through advertising and the in-game sale of “virtual goods” to players. The Complaint alleges that throughout the Class Period the defendants issued false and/or misleading statements or failed to disclose material adverse facts about Zynga's business and financial prospects. Specifically, the Complaint alleges that: (i) despite a sustained decline in users of the Company's games and declines in average bookings per user, Zynga issued positive financial forecasts between February and April 2012 that were not justified in light of the Company's financial performance and trends; and (ii) the positive forecasts enabled senior executives and selected investors to sell nearly $600 million of Zynga shares at inflated prices in early April 2012 – approximately two months before a lock-up period previously agreed to by Zynga executives was scheduled to expire. On July 25, 2012 the Company announced sharply lower earnings and a greatly reduced outlook for 2012, reducing approximately by half its forecasted adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), to a range of $180-$250 million, and cutting forecasted earnings per share by more than two-thirds, to a range of $0.04-$0.09. In response to this news, the price of Zynga shares declined more than 37%, or $1.90 per share, to close at $3.18 per share on July 26, 2012 on heavy trading volume. If you are a member of the Class described above, you may move the Court, no later than October 1, 2012 to serve as lead plaintiff; however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Glancy Binkow & Goldberg LLP, Los Angeles, CAMichael Goldberg(310) 201-9150 or (888) email@example.com