Wolf Haldenstein Adler Freeman & Herz LLP today filed a class action lawsuit in the United States District Court, Northern District of California, on behalf of all persons who purchased the common stock of Zynga Inc. (“Zynga” or the “Company”) [NASDAQ:ZNGA] between December 16, 2011 and July 25, 2012, inclusive (the “Class Period”), against the Company and certain of the Company’s officers and directors (“Defendants”), alleging securities fraud pursuant to Sections 10(b) and 20(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the “Class”).
The case name is Gaines v. Zynga Inc., et al., Civil Action No. 12-cv-4133. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
During the Class Period, Zynga issued materially false and misleading statements and omitted to state material facts that rendered their affirmative statements misleading as they related to the Company’s financial performance, financial condition and internal operational controls. As a result of these materially false and misleading statements, the price of the Company’s securities was artificially inflated during the Class Period. As the truth of the Company’s materially false and misleading statements entered the market, the Company’s stock plummeted.
On December 15, 2011, Zynga floated its initial public offering (the “IPO”) of 100,000,000 shares of its Class A common stock at a price to the public of $10 per share on the NASDAQ Global Select Market under the symbol “ZNGA.” An Amended Form S-1 filed December 15, 2011 failed to disclose that agreements with Facebook, which could heavily affect Zynga’s future bookings and revenue stream, were scheduled to expire on April 30, 2012.Pursuant to the Company’s IPO Prospectus filed with the SEC on December 16, 2011, all officers and directors of the Company had entered into lock-up agreements which provided that they would not offer, sell or transfer any shares of common stock beneficially owned by them for 165 days, or until May 28, 2012.
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