You have not played any game recently!

Remove ?

You are removing the game from your account and My Games . Depending on the developer, your game progress may be permanently deleted.

Note: may still retain some data you shared with them directly or during game play. Please visit () privacy policy for details about having your data deleted.

Plugged In

Law firm accuses Zynga of failing to disclose key data

Plugged In

By Gerry Shih, Reuters

View photo

.
SAN FRANCISCO (Reuters) - A California law firm representing a stockholder has filed a class-action lawsuit against 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 submitted late on Monday, 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.

Zynga declined to comment.

Its shares fell 3 percent to $2.91 in morning trading.

(Reporting By Gerry Shih; Editing by Gerald E. McCormick, John Wallace and Andrew Hay)

For game news, free codes and more, Like us on Facebook, follow @yahoogames on Twitter and check us out on Pinterest!

View Comments