Feeds

Zynga faces legal probe over senior management share sales

Lawyers claim $516m cashed in before stock tanked

SANS - Survey on application security programs

Zynga's plummeting stock price has brought the attention of lawyers, who have started an investigation into the recent stock dealings by the senior management of the gaming company.

At issue is the sale of 43 million shares of stock by Zynga top brass, netting them $516m in profit. The sales were carried out a couple of months before the financial results were announced that have had such a calamitous effect on the company's fortunes.

"The timing of these insider sales two months before is suspect," Jeffrey Norton, senior attorney at law firm Newman Ferrara tells The Register. "Zynga insiders at the highest level all sold shares at that time."

Norton said that the firm has already been contacted by dozens of investors and is looking to hear from those who bought stock in Zynga between December 16, 2011 and July 25, 2012. The company could be filing a legal case as soon as Monday morning he said.

This is not the first time Norton has been involved in holding companies to account for such dealings. He was part of the team that saw Veritas cough up $30m after it was found to have been cooking its books.

Zynga raised $1bn at its IPO last year, which was then the largest such offering since the floatation of Google. It's shares peaked at over $14 in March but are now trading at a little over $3 and the stock market is showing little enthusiasm for the company after it warned of a tough 2012's trading.

The company did not reply to a request for comment from El Reg. ®

High performance access to file storage

More from The Register

next story
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Alphadex fires back at British Gas with overcharging allegation
Brit colo outfit says it paid for 347KVA, has been charged for 1940KVA
Jack the RIPA: Blighty cops ignore law, retain innocents' comms data
Prime minister: Nothing to see here, go about your business
Banks slap Olympus with £160 MEEELLION lawsuit
Scandal hit camera maker just can't shake off its past
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.