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Tuesday, 31 July 2012 - Law firm accuses Zynga of failing to disclose key data |
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See the best of Reuters photography.  See more | Photo caption  Olympic best Our top photos from the London 2012 Olympic Games.  Slideshow  Olympic tattoos Athletes' tattoos are sported during the Games.   Slideshow  Law firm accuses Zynga of failing to disclose key data Tweet Share this Email Print Related News Analysis: Internet stock collapse dents Silicon Valley Fri, Jul 27 2012 Facebook's value slides by $10 billion; outlook unclear Fri, Jul 27 2012 Facebook revenue growth skids, shares plunge Fri, Jul 27 2012 Twitter suffers second outage in five weeks Thu, Jul 26 2012 Facebook shares pressured by Zynga ahead of results Thu, Jul 26 2012 Analysis & Opinion Get ready for plaintiffs’ lawyer brawl over Libor class actions Lead counsel contests take shape in Facebook, JPMorgan cases Related Topics Tech » SAN FRANCISCO | Tue Jul 31, 2012 11:58am EDT SAN FRANCISCO (Reuters) - 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 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. (Reporting By Gerry Shih; Editing by Gerald E. McCormick and John Wallace) Tech Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. 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