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Social gaming company Zynga, its executives and bankers were hit with a class action lawsuit Tuesday alleging insider trading.
From MSNBC.com:
The lawsuit, filed in federal court by the firm Newman Ferrara, accuses Zynga CEO Mark Pincus and other top brass of violating federal securities laws. The lawsuit was filed on behalf of only one particular person -- shareholder Mark Destefano -- but names "all others similarly situated" which means it's headed toward becoming a class-action lawsuit. (You can read the lawsuit in full here.)
Zynga operates the world’s largest free-to-play online poker room. It has since announced plans to offer a “real money” platform early next year.
News of the class action suit comes just days after the company lost around 40 percent of its value following the release of disappointing financials and a lackluster forecast.
- Aaron Goldstein, Gambling911.com
