Featured Articles

TSMC: Volume production of 16nm FinFET in 2H 2015

TSMC: Volume production of 16nm FinFET in 2H 2015

TSMC has announced that it will begin volume production of 16nm FinFET products in the second half of 2015, in late…

More...
AMD misses earnings targets, announces layoffs

AMD misses earnings targets, announces layoffs

AMD has missed earnings targets and is planning a substantial job cuts. The company reported quarterly earnings yesterday and the street is…

More...
Did Google botch the Nexus 6 and Nexus 9?

Did Google botch the Nexus 6 and Nexus 9?

As expected, Google has finally released the eagerly awaited Nexus 6 phablet and its first 64-bit device, the Nexus 9 tablet.

More...
Gainward GTX 970 Phantom previewed

Gainward GTX 970 Phantom previewed

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

More...
EVGA GTX 970 SC ACX 2.0 reviewed

EVGA GTX 970 SC ACX 2.0 reviewed

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

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