The law firm of Wohl & Fruchter LLP announces that it has commenced an investigation concerning possible violations of federal securities laws and breaches of fiduciary duty by officers and directors of Zynga Inc. (Zynga) (NASDQ: ZNGA), a developer and marketer of online social games.
On July 25, 2012, Zynga released financial results for the second quarter of 2012 that fell far below expectations, reporting earnings of 1 cent per share on revenue of $332 million compared to analyst estimates of 5 cents per share on revenue of $344 million. Zynga also slashed its outlook for the rest of the year, saying it expects full-year earnings of 4 to 9 cents per share, far below analyst estimates.
Upon this news, ZNGA shares fell over 38 percent to close at $3.12 per share on July 26, 2012, representing a loss of shareholder value of over $1.4 billion.
Zynga’s strongly negative financial results follow a secondary stock offering in April 2012 in which insiders sold 43 million shares of stock to the public at $12.00 per share, receiving $516 million for shares now worth just $136 million.Persons with relevant information, and ZNGA shareholders with questions about this investigation, are invited to contact our Firm by calling 866 582 8140. Additional information is available on our website at: http://www.wohlfruchter.com/cases/znga About Wohl & Fruchter Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners. This release may be deemed to constitute attorney advertising.
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