Tuesday, February 25, 2014

Zynga wins dismissal of fraud lawsuit linked to IPO

Player avatars from Zynga's FarmVille 2 are seen on a stairway at the entrance to Zynga headquarters in San Francisco Zynga Inc has won the dismissal of a lawsuit in which shareholders accused the online gaming company of fraudulently misleading them about its financial and business prospects before and after its December 2011 initial public offering. U.S. District Judge Jeffrey White in San Francisco said that despite their "excessively long and prolix" 110-page complaint, the shareholders failed to include "relevant, basic factual details" to support their claims against Zynga, company officials including founder Mark Pincus, and underwriters led by Morgan Stanley and Goldman Sachs & Co. White also dismissed claims linked to an April 2012 secondary stock offering, saying the named plaintiffs lacked standing because they did not buy shares in that offering. He gave the shareholders a chance to amend their complaint.








via Gaming News Headlines - Yahoo! News http://ift.tt/1fD5Gsh

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