Lawsuits Are Coming For Zynga and Facebook

Zynga and Facebook just had back to back grand slam walk off blow ups, that will have lawyers all over them with class action lawsuits.  They will say that FaceBook ripped off the public when it came public and they will get Zynga with the secondary offering they did back in April at $12 when insiders dumped 43 million shares.  Whether or not something comes out these lawsuits, no one knows, but expect ambulance chase type action soon.  Too bad we don’t have any public law firms.

Here are some of the Zynga secondary selling shareholders:

  • Marc Pincus, Zynga’s CEO, sold 16.5 million shares for $200 million
  • Institutional Venture Partners, a Zynga investor, sold 5.8 million shares for $70 million
  • Union Square Ventures, a Zynga investor, sold 5.2 million shares for $62 million
  • Google, a Zynga investor, sold 4 million shares for $48 million
  • Silver Lake Partners, a Zynga investor, sold 4 million shares for $48 million
  • Reid Hoffman, a Zynga investor, sold 688,000 shares for $8.2 million
  • David Wehner, Zynga’s CFO, sold 386,000 shares for $4.6 million
  • John Schappert, Zynga’s COO, sold 322,000 shares for $3.9 million
  • Reginald Davis, Zynga’s general counsel, sold 315,000 shares for $3.8 million

Read more: http://www.businessinsider.com/zynga-insiders-cashed-out-just-before-stock-crashed-2012-7#ixzz21m9U2Ua9


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.


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