The Law Offices of Todd M. Garber 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 the securities of Zynga Inc. (“Zynga” or the “Company”) (NASDAQ:ZNGA) between December 16, 2011 and July 25, 2012, inclusive (the “Class Period”).
Zynga provides online social game services, and generates revenue primarily through advertising and the in-game sale of “virtual goods” to players. 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 significantly reduced outlook for 2012, cutting its forecasted adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) approximately by half, to a range of $180-$250 million, and cutting forecasted per-share earnings by more than two-thirds, to a range of $0.04-$0.09.
If you are a member of the above-described Class, you may move the Court no later than October 1, 2012 to serve as lead plaintiff; however, you must meet certain legal requirements. To be a member of the Class you need not take any action at this time, or you may retain counsel of your choice. If you have information or would like to learn more about these claims, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Todd M. Garber, Esquire, of the Law Offices of Todd M. Garber, by telephone at 213-700-7262 or by email to firstname.lastname@example.org.This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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