Zynga share dealings face legal investigation

Ben Parfitt
Zynga share dealings face legal investigation

Lawyers have announced an investigation into Zynga’s share dealings.

The company suffered an astonishing 40 per cent drop in its share price following its disappointing recent financials that revealed a $22.8m loss for its fiscal Q2.

However, people have asked questions about a flash stock sale around two months prior that saw top-level company insiders sell off 43m shares, worth around $516m.

Had that sale occurred after the financial report that returned value would have been considerably reduced.

"The timing of these insider sales two months before is suspect," senior attorney at law Jeffrey Norton told The Register. "Zynga insiders at the highest level all sold shares at that time."

As of March 2012 Zynga’s shares were trading at $14.69. Today they are trading at just $3.06.

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Tags: zynga , share , shares , investigation , dealings

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