Zynga executives and key investors are being sued for insider trading
If you're not to date on Zynga's financial situation, worry not. Here's a quick summary: it crashed. During this past fiscal quarter, stocks took a huge dive, and now they are priced at a measly $3. And now, many of the company's executives and investors are being sued. Why? Here's why.
Back in April (which was in the same fiscal quarter as the crash), Zynga conducted a "secondary stock offering", in which various key investors and Zynga executives (including CEO Marc Pincus) sold a grand total of 43 million shares of stock (with each share priced at $12), pulling in about $516 million between them all. None of the money made in the offering went to Zynga.
All this stock was sold right before the crash, at "exactly the right time," according to Business Insider's Henry Blodget. And that has lead people to suspect that some rather unethical insider business has been going on, resulting in investigations on the matter from law firms like Schubert Jonckheer & Kolbe.
Meanwhile, the executives and investors in question are facing five lawsuits under the accusations of insider trading.
Via: Business Insider
Link: Filed complaint
A writer, journalist, and aspiring storyteller, Peter Grimm has been gaming since the days of the Nintendo 64, and reporting on the goings-on in the World of Gaming since late 2011. His base of writing operations is located within the void between Here and There, or so he would have you think.
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