NEW YORK, Aug. 1, 2012 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit (1:12-cv-11279) against Zynga Inc. ("Zynga" or the "Company") (Nasdaq:ZNGA) and certain of its officers. The class action (CV-12-4048) filed in United States District Court, Northern District of California, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Zynga securities between February 15, 2012 and July 25, 2012, inclusive (the "Class Period"). This class action lawsuit seeks to recover damages caused by the Company's violations of the federal securities laws and to pursue remedies under § 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Zynga securities during the Class Period, you have until October 1, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Zynga operates as a social gaming company. The Complaint alleges that throughout the Class Period, the Company made materially false and misleading statements and/or failed to disclose that: (i) the Company was experiencing a rapid decline in the number of users for its existing web based games; (ii) the Company was experiencing substantial delays in launching new web based games; (iii) the Company was failing to take advantage of the changes on Facebook's web platform; (iv) the Company was unable to effectively monetize revenues from mobile devices through its web based games; and (v) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On July 25, 2012, after the market closed, Zynga reported a net loss of $22.8 million and lower than expected earnings estimates for the second quarter 2012, and drastically lowered its outlook for the rest of the year. On this news, Zynga shares declined $1.90 per share or nearly 37%, to close at $3.175 per share on July 26, 2012.
The Pomerantz Firm, with offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.