Bernstein Liebhard LLP Announces Investigation Into Zynga, Inc.
July 31, 2012
Bernstein Liebhard LLP today announced an investigation into potential securities claims against Zynga, Inc. (ZNGA) (“Zynga” or the “Company”), a developer and marketer of online social games.
Zynga went public in December 2011 at $10 per share. On March 29, 2012, Zynga filed a Prospectus for a Secondary Offering of almost 43 million shares by pre-IPO owners of Zynga stock at $12.00 per share. The Secondary Offering was completed on April 3, 2012.
On July 25, 2012, after close of trading, Zynga released its financial results for the second quarter of 2012. Zynga announced a net loss of $22.8 million for the second quarter – or earnings of 1 cent versus analyst estimates of 5 cents – an 80% miss. Zynga also lowered guidance going forward. Upon this news, Zynga’s shares plummeted nearly 40 percent to close at $3.12 on July 26, 2012.
Bernstein Liebhard has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last nine years.