Updated 19 May, 2013, 12:14 pm IST

Law firm accuses Zynga of failing to disclose key data

01 Aug, 2012 |

A California law firm sued Zynga Inc , accusing the game publisher of failing to disclose a rapid decline in users and revenue. The social gaming giant behind "Farmville" and a plethora of other Facebook games last week stunned Wall Street by reporting quarterly results well below expectations and slashing its 2012 revenue forecast. Its stock plummeted 42 percent to a record low and analysts cut their recommendations on the stock.

Zynga's stock plummeted 42 percent to a record low

Zynga's results also cast a pall over Facebook Inc because the No. 1 social network relies on Zynga for roughly 15 percent of its revenue.

In its lawsuit, the law firm Kessler Topaz Meltzer & Check LLP accused Zynga of concealing declines in users and the sale of virtual goods, the company's prime revenue source.

In its filing, submitted late on Monday, the San Francisco law firm sought class-action status for its lawsuit. Zynga could not be immediately reached for comment on Tuesday. Its shares fell 3 percent to $2.91 in morning trading.

Reuters

Tags: Zynga , Zynga stocks , Zynga games , Zynga Facebook games , Zynga quarter 2 results , Zynga second quarter results , Zynga key data

TRENDING NOW!

6 Things to look for when buying a 'future-proof' smartphone

Hands-on with the quad-core Panasonic P51

4.3-inch, Intel-based, Xolo X910 smartphone spotted online

ZTE to launch devices ranging from Rs 5,799 to Rs 14,999 in India

LinkedIn bans prostitutes and escorts from its network

Temple Run 2 update brings new terrain, two new ways to die

SPOTLIGHT

Is Google's Glass gadget cool or...

19 May, 2013, 10:37 AM

HTC One production capacity improving,...

18 May, 2013, 04:38 PM

6 Things to look for when buying a...

18 May, 2013, 01:07 PM

Is Samsung 'mentally enslaving' Indian smartphone buyers...

17 May, 2013, 07:51 PM IST

Your Aadhaar card hasn’t reached you yet? Download e-Aadhaar

17 May, 2013, 01:09 PM IST

tech2 live: The latest from Google I/O 2013

16 May, 2013, 01:56 PM IST

MouthShut.com petitions SC to protect freedom of expression and quash

09 May, 2013, 07:01 PM IST

No arrests over objectionable posts on social sites without senior...

16 May, 2013, 03:17 PM IST

Silicon Valley hub Fremont banks on tech manufacturing to regain prominence

19 May, 2013, 11:16 AM

Amid frenzy over map apps, new focus on 16th century world view

19 May, 2013, 10:43 AM

Is Google's Glass gadget cool or creepy?

19 May, 2013, 10:37 AM

MORE NEWS

Your Aadhaar card hasn’t reached you yet? Download e-Aadhaar

To avoid all the hassle and with a view to make it convenient for...

By Naina Khedekar

5 Tech gift ideas for mom

We have 5 tech gift ideas that will help you find a gift that will...

By Naina Khedekar

5 Websites to create custom t-shirts

If you are bored of wearing the run-of-the-mill t-shirts, then you can...

By Priyanka Tilve

MORE FEATURES

Your Aadhaar card hasn’t reached you yet? Download e-Aadhaar

To avoid all the hassle and with a view to make it convenient for...

By Naina Khedekar

5 Websites to create custom t-shirts

If you are bored of wearing the run-of-the-mill t-shirts, then you can...

By Priyanka Tilve

6 Cool examples of 3D printing

The concept of 3D Printing has taken the western world by storm. There are

By Priyanka Tilve

MORE FEATURES

Your Aadhaar card hasn’t reached you yet? Download e-Aadhaar

To avoid all the hassle and with a view to make it convenient for...

By Naina Khedekar

Must-have gadgets for vacations

We've jotted down a list of outdoor gadgets that you could carry on a

By Naina Khedekar

5 Websites to create custom t-shirts

If you are bored of wearing the run-of-the-mill t-shirts, then you can...

By Priyanka Tilve

MORE FEATURES

Epson Moverio BT-100 Review

01 Nov, 2012, 10:05 AM IST

7.0

Wearable displays look super cool in sci-fi movies, but have failed to make a commercial success till now. Almost every year, we see prototypes shown off at exhibitions like CES...

Nvidia 3D Vision 2 Kit Review

iTwin Review

Portronics MOJO Charger - The Convenient, Portable Charger

MORE REVIEWS

Nvidia 3D Vision 2 Kit Review