Zynga faces lawsuit alleging executives engaged in insider trading
After last week’s second quarter earnings call, Zynga’s stock price tumbled even lower and five legal firms announced they were investigating allegations that members of the company engaged in insider trading. Today, VentureBeat is reporting San Francisco-based firm Newman Ferrara has filed a class-action lawsuit against Zynga, the company’s directors and associated brokerages.
The suit was filed on behalf of Mark H. DeStefano and “all other persons similarly situated.” The main allegations are based around how Zynga set the initial executive lock-up agreement to expire on May 28, 2012 (ten days after Facebook’s IPO and Zynga’s
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