SAN DIEGO--(BUSINESS WIRE)--Shareholder Rights Law Firm Johnson & Weaver, LLP announces that it is investigating whether certain officers and directors of Zynga, Inc. ("Zynga") (Nasdaq stock symbol: ZNGA) engaged in fraudulent conduct or breached their fiduciary duties to shareholders in violation of state and federal securities laws.
Zynga describes itself as the world's leading provider of social game services, providing on-line gaming principally on Facebook and mobile devices.
On July 25, 2012, Zynga announced a net loss of $22.8 million for the second quarter of 2012, and drastically lowered estimates for its revenue for the full year. On this news, Zynga's common stock dropped nearly 40%, to $3.10 per share.
In a secondary stock offering in April of this year, certain of Zynga’s officers, directors, and investors sold over $500 million worth of their stock.
Johnson & Weaver’s investigation focuses on whether certain officers and directors of Zynga breached their fiduciary duties by failing to inform investors of material adverse information, including declining sales and revenues, while at the same time selling their own shares.
Investors who purchased shares of Zynga common stock at any time before July 26, 2012, including those who purchased during the company’s IPO in December 2011, and who currently still own any shares may have legal rights to compensation.
Johnson & Weaver, LLP invites Zynga shareholders who are concerned about their legal rights and remedies, as well as others who may have information about the above, to contact attorney David Elliot at (619) 230-0063 or firstname.lastname@example.org.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.