Featured Articles

Analysts expect ARM to do well next year

Analysts expect ARM to do well next year

British chip designer ARM could cash in on the mobile industry's rush to transition to 64-bit operating systems and hardware.

More...
Huawei and Xiaomi outpace Lenovo, LG in smartphone market

Huawei and Xiaomi outpace Lenovo, LG in smartphone market

Samsung has lost smartphone market share, ending the quarter on a low note and Xiaomi appears to be the big winner.

More...
Intel Broadwell 15W coming to CES

Intel Broadwell 15W coming to CES

It looks like Intel will be showing off its 14nm processors, codenames Broadwell, in a couple of weeks at CES 2015.

More...
Gainward GTX 980 Phantom reviewed

Gainward GTX 980 Phantom reviewed

Today we’ll be taking a closer look at the recently introduced Gainward GTX 980 4GB with the company’s trademark Phantom cooler.

More...
Zotac ZBOX Sphere OI520 barebones vs Sphere Plus review

Zotac ZBOX Sphere OI520 barebones vs Sphere Plus review

Zotac has been in the nettop and mini-PC space for more than four years now and it has managed to carve…

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