Law firm accuses Zynga of failing to disclose key data

Law firm accuses Zynga of failing to disclose key data
Advertisement
A California law firm representing a stockholder has filed a class-action lawsuit against Zynga Inc , accusing the game publisher of failing to disclose a rapid decline in users and revenue.

The social gaming giant behind "Farmville" and a plethora of other Facebook games last week stunned Wall Street by reporting quarterly results well below expectations and slashing its 2012 revenue forecast. Its stock plummeted 42 percent to a record low and analysts cut their recommendations on the stock.

Zynga's results also cast a pall over Facebook Inc because the No. 1 social network relies on Zynga for roughly 15 percent of its revenue.

In its lawsuit submitted late on Monday, the law firm Kessler Topaz Meltzer & Check LLP accused Zynga of concealing declines in users and the sale of virtual goods, the company's prime revenue source.

Zynga declined to comment.

Its shares fell 3 percent to $2.91 in morning trading.

Copyright Thomson Reuters 2012

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

London 2012 hockey: Olympics day 6 Google doodle
Dropbox confirms accounts compromised, adds security features
Facebook Gadgets360 Twitter Share Tweet Snapchat LinkedIn Reddit Comment google-newsGoogle News

Advertisement

Follow Us
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »