CINCINNATI, Aug. 2, 2011 (GLOBE NEWSWIRE) -- On July 22, 2011, Strauss & Troy filed a class action lawsuit on behalf of all purchasers of Zoo Entertainment, Inc. (Nasdaq:ZOOG). The Complaint was filed in the United States District Court for the Southern District of Ohio on behalf of investors who purchased shares in Zoo Entertainment ("Zoo" or the "Company") between May17, 2010 and April 15, 2011.
The Complaint alleges that Zoo Entertainment and certain of its officers and directors violated federal securities laws by issuing a series of false and misleading statements which had the effect of artificially inflating the market price. Specifically the complaint alleges that Defendants, notwithstanding their knowledge of the Company's material weaknesses in its internal controls, caused the Cincinnati-based computer game company to report financial results that overstated shareholder equity by over $250,000 and inflated both net income and diluted net income per common share by 660% and 900%, respectively.
On April 15, 2011, the Company disclosed that it had erred "in recording certain transactions in the Company's previously filed unaudited consolidated financial statements" for the first three quarters of 2010, ended March 31, 2010, June 30, 2010 and September 30, 2010. As a result, the Company warned that investors should no longer rely on those financial statements. On the announcement of this news, the price of Zoo common stock plummeted 34.3%.
Plaintiffs seek to recover damages on behalf of themselves and all other individual and institutional investors who purchased or otherwise acquired Zoo Entertainment, Inc. common stock between May 17, 2010 and April 15, 2011, excluding Defendants and their affiliates. Plaintiffs are represented by Strauss & Troy, a law firm with extensive experience in prosecuting class actions for violations of the federal securities laws. If you are interested in becoming a lead plaintiff, you may file a motion with the court no later than September 26, 2011, and request that the court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of class members. If you would like more information about the Zoo shareholder lawsuit, or have any questions concerning your rights or interests, please contact:
Richard S. Wayne, Esq. or Annie C. Jansen, STRAUSS & TROY, 150 E. Fourth Street, Cincinnati, Ohio 45202 (513) 621-2120, rswayne@strausstroy.com , acjansen@strausstroy.com.