It was bound to happen eventually: Zynga (ZNGA -2.7%) and its underwriters have been hit with a...

It was bound to happen eventually: Zynga (ZNGA -2.7%) and its underwriters have been hit with a class-action suit over the huge insider sales conducted through an April 3 secondary offering, Those sales happened at $12 - Zynga is trading at 1/4 that level following a brutal Q2 report. However, as Dan Primack points out, the plaintiffs' case is hurt by the fact Zynga delivered a Q1 beat following the offering.

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Comments (3)
  • Good Captain
    , contributor
    Comments (463) | Send Message
    Interesting. I wonder when the FaceBook suits materialize?
    31 Jul 2012, 04:16 PM Reply Like
  • winningtrader
    , contributor
    Comments (2459) | Send Message
    FB and GRPN should join the party as well .... typical pump and dump strategies. I personally think that GRPN and ZNGA are going to 0 and have no doubt that their management can spend all the cash reserves. FB is not as bad but should go to $5 I reckon once the insiders start selling in size.
    31 Jul 2012, 04:55 PM Reply Like
  • bulskyn
    , contributor
    Comments (4) | Send Message
    I'll agree with that. I see fair value for FB being roughly 5-7. I think ZNGA *might* survive but only as a penny stock - too dependent on FB growth which is slowing unless it can not only make inroads in China (and everything that entails) but steal away market share from the more established Chinese competitors.
    31 Jul 2012, 07:13 PM Reply Like
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