Zynga Inc. Securities LitigationJuly 31, 2012
Newman Ferrara LLP today announced that it was appointed Co-Lead counsel with the firm Berman DeValerio in the securities class action captioned In re Zynga Inc. Securities Litigation, No. 12-cv-04007-JSW, pending in the U.S. District Court for the Northern District of California. Newman Ferrara client and shareholder David Fee was appointed as lead plaintiff in this action brought on behalf of shareholders of Zynga Inc. ("Zynga") (NASDAQ: ZNGA), alleging violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10(b)(5) promulgated thereunder, by Zynga, certain of its officers and directors, and those who served as underwriters in connection with Zynga's Initial Public Offering on December 16, 2011 and secondary stock offering on April 3, 2012.
On July 25, 2012, Zynga announced its financial results for the second quarter of 2012, reporting substantially lower bookings than previously expected and issuing a dismal forecast for the rest of the year, sharply lowering its 2012 guidance. Following this announcement, Zynga's common stock plummeted 40% in value down to $2.97 per share. The Complaint alleges that the defendants issued false and misleading statements and omissions, including false and misleading Registration Statements and Prospectuses issued in connection with Zynga's Initial Public Offering and secondary offering, relating to the business, financial results, and management of Zynga.
The action seeks to recover damages on behalf of purchasers of Zynga common stock between December 15, 2011 and July 25, 2012, inclusive (the "Class Period").
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