Reports are that Zynga is being investigated by multiple law firms for their business practices before the company’s recent stock dive. This follows reports that a number of Zynga insiders sold large amounts of stock just months before their value tanked, raising concerns that information about the state of the business was being withheld.
Levi & Korsinsky is investigating “concerns that Zynga misrepresented and/or failed to disclose materially adverse facts about its business and financial condition”.
Zynga recently lowered its outlook for the rest of 2012, citing “delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something.”
Source: Kotaku
