NEW YORK, Aug. 27, 2012 (GLOBE NEWSWIRE) -- Morgan & Morgan reminds investors that it filed a class action in the United States District Court for the Northern District of California on behalf of purchasers of Zynga, Inc.("Zynga") (Nasdaq:ZNGA) who purchased or otherwise acquired the common stock of Zynga between December 16, 2011 and July 25, 2012, inclusive (the "Class Period"), for violations of the Securities Exchange Act of 1934 (the "Exchange Act").
If you purchased Zynga between December 16, 2011 and July 25, 2012, you may, no later than October 1, 2012, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported 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.
For more information please contact either Peter Safirstein or Sheila Feerick at Morgan & Morgan, Five Penn Plaza, 23rd floor, New York, New York 10001 or by telephone at (800) 732-5200, or by email to zyngacase@morgansecuritieslaw.com, or visit our website at www.morgansecuritieslaw.com.
The Complaint alleges that Zynga, a developer, marketer and operator of online social games, and certain of its officers and directors, violated the federal securities laws. During the class period, Zynga projected strong earnings and growth projections regarding the Company's games and games development. Unbeknownst to the investing public however, Zynga was experiencing a sharp drop-off in users of its most profitable web games, and delays in developing new games to launch on social media platforms. On July 25, 2012 Zynga announced lower than expected earnings and lowered 2012 guidance. Upon this news, shares of Zynga common stock plummeted 37% to a trading low of $2.97 per share, representing a loss in value of over 81% compared to the March 2, 2012 Class Period trading high of $15.91 per share.
The Complaint alleges that insiders including Defendants Pincus, Wehner, and Schappert, sold millions of shares for proceeds of more than $500 million, cashing out right before the stock imploded. In particular, CEO Pincus sold 16.5 million shares for proceeds of more than $192 million.
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