Facebook and casual gaming company Zynga has been officially hit with their first lawsuit involving allegations of the executive team of the company had insider trading knowledge regarding last week's massive stock dumping.
The lawsuit is the first of five expected for the company due to five different law firms investing claims with the rest expected to be officially filed in the near future.
In regards to the first lawsuit, the allegations revolve around Zygna having inside knowledge of their stock value dropping. They are also being alleged of withholding the true value of the stock and other data from investors in order to have prevented them from cashing out and tanking the stocks value before the company itself had a chance to cash out first to the tune of $500 million.
The company is also under investigation for not allowing their own employees to cash out who were concerned about a potential stock value drop while putting no restrictions on top-level employees who knew of the imminent drop.
Quote:
"Zynga's regular employees were still locked up from selling their shares. But the guys at the top, who saw what was coming down the pipe, got to cash out," Ferrara attorney Roy Shimon explained to The Verge.
As The Verge points out (by way of the New York Times), Pincus himself only cashed out a fraction of his total stock earnings, meaning he took a significant financial hit along with other shareholders. However COO John Schappert sold roughly 45% of his total stock, while CFO David Wehner unloaded more than half his shares.
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The stock valve ended up plummeting from a valve of $12 per share in April to the current value of $3 a share with last week's stock dumping by the company occurring when the valve was roughly $6 a share.
http://www.screwattack.com/news/zyng...ding-knowledge
http://www.giantbomb.com/news/first-...g-claims/4306/
http://www.egmnow.com/articles/news/...uits-incoming/
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Daily Recap:
1) Bioware announces the plans to make Star Wars The Old Republic MMO game as a free-to-play game has changed a bit with the original goal of a level cap set at 15 now being set to 50 for free members along with a price drop to the game itself to a new $14.99 starting this August.
http://www.giantbomb.com/news/star-w...his-fall/4307/
http://www.egmnow.com/articles/news/...-fall-says-ea/
2) Activision and developers Robomodo hint Tony Hawk Pro Skater HD might be getting a sequel announced soon based on the huge day one sales of Tony Hawk HD on XBLA.
http://www.screwattack.com/news/tony...own-way-sequel
http://www.destructoid.com/robomodo-...y-232248.phtml
3) Another God of War collection set is rumored to be in the making called "God of War Saga Collection" which include the PSP God of War HD set, the PS3 God of War 1&2 HD set, and God of War 3 along with a rumored release date of late 2012.
http://www.egmnow.com/articles/news/...playstation-3/