Press release from Business Wire
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Zynga Inc.
Tuesday, July 31, 2012
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Zynga Inc.17:45 EDT Tuesday, July 31, 2012 SAN DIEGO (Business Wire) -- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/zynga/) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Zynga Inc. (“Zynga”) (NASDAQ:ZNGA) common stock during the period between December 16, 2011 and July 25, 2012, inclusive (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/zynga/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges Zynga and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Zynga is a developer of online social games accessible to players worldwide on Facebook and other social networks, mobile platforms and Zynga.com. The complaint alleges that during the Class Period, defendants issued false and misleading statements regarding Zynga's business and prospects, including in Registration Statements and Prospectuses for the Company's initial public offering (“IPO”) and secondary offering of its Class A common stock. As a result of defendants' false statements, Zynga stock traded at artificially inflated prices during the Class Period, reaching a high of $14.69 per share on March 2, 2012. Then on July 25, 2012, the Company issued a press release announcing second quarter fiscal 2012 financial results below Wall Street estimates, stating that the Company had experienced a sequential decline in bookings. The Company also substantially reduced its fiscal 2012 bookings and earnings per share outlook, explaining that the prospects for its March 21, 2012 acquisition of OMGPOP, a creator of social networking games and a particularly popular game called “Draw Something,” had dimmed, and that changes to Facebook's web platform had hurt its results and outlook. On July 26, 2012, the Company's stock price plummeted 37% in response to the July 25, 2012 announcement of the Company's financial results, closing at $3.17 per share. According to the complaint, defendants' Class Period representations were each materially false and misleading when made as defendants failed to disclose the true facts which were known or recklessly disregarded by them, including the following: (a) the December 15, 2011 Registration Statement for the Company's IPO failed to disclose that under Zynga's agreements with Facebook, Zynga game cards could only be distributed and redeemed on Facebook until April 30, 2012, or the true extent of the current risk of Facebook policy changes on Zynga's bookings prospects and overall financial condition; (b) Facebook, upon which the Company was heavily reliant for users and bookings, had already begun to change its platform and user policies to a degree that would negatively impact Zynga's current and future bookings metrics and growth prospects; (c) the March 2012 acquisition of OMGPOP and “Draw Something” could not support the increased bookings and financial forecasts issued during the Class Period; and (d) in light of the facts set forth above, the Company did not have a reasonable basis for its fiscal 2012 financial forecasts issued during the Class Period. Plaintiff seeks to recover damages on behalf of all purchasers of Zynga common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $1.5 trillion. The firm has obtained the largest recoveries in history in six of the eight categories of shareholder class action settlements and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm's recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information. Robbins Geller Rudman & Dowd LLPDarren Robbins800/449-4900 or email@example.com