Featured Articles

Nvidia GTX 980 reviewed

Nvidia GTX 980 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
Nvidia adjusts GTX 980 and GTX 970 pricing

Nvidia adjusts GTX 980 and GTX 970 pricing

It appears that Nvidia has been feeling the pulse of the market and took some note from comments regarding the original…

More...
iPhone 6 and 6 Plus reviews are up and they are good

iPhone 6 and 6 Plus reviews are up and they are good

Apple is dancing the same dance year after year. It releases the iPhone and two days before they start shipping it…

More...
Amazon announces three new tablets

Amazon announces three new tablets

Amazon has just released three new tablets starting with the $99 priced 6-inch Kindle Fire HD6. This is a 6-inch tablet…

More...
PowerColor TurboDuo R9 285 reviewed

PowerColor TurboDuo R9 285 reviewed

Today we will take a look at the PowerColor TurboDuo Radeon R9 285. The card is based on AMD’s new…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Wednesday, 01 August 2012 10:26

Zynga sued by shareholders

Written by Nick Farrell



Farmville maker could buy the farm


Zynga has been sued by shareholders accusing the "FarmVille" creator of failing to warn about declines in user and revenue growth.

Last week the company announced that it had disastrous results and its shares fell dramatically. Two California law firms filed lawsuits seeking class-action status on behalf of stockholders this week, taking the company to task for allegedly concealing threats to its business and sales growth. They failed to mention that Facebook had changed its platform to make it easier for users to find rival games. Zynga stunned Wall Street by reporting quarterly results well below expectations and slashing its 2012 revenue forecast. Its stock fell by 42 percent to a record low and analysts cut their recommendations on the stock.

Law firm Kessler Topaz Meltzer & Check claim that Zynga misrepresented or failed to disclose material adverse facts about its business, operations, and growth prospects.

The lawsuit accused Zynga of concealing declines in users and the sale of virtual goods such as a cow in "FarmVille" which is its prime revenue source. A second lawsuit filed Tuesday by Robbins, Geller, Rudman and Dowd repeated many of the claims.
Zynga shares are now worth less than $2.95 which is a far cry from their December $10 début price and can probably buy you less cows.

Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments