Zynga lawsuit reopened in Delaware Supreme Court

Most of us are familiar with Zynga, the mobile gaming company that brought us gems like Words with Friends and some less than great games, at least in this reporter’s opinion, like Farmville. Most of you have probably received or know friends who have received requests to play the game.
It just so happens that this San Francisco-based company was incorporated in Delaware, which comes at no surprise to us, which puts it in the jurisdiction of the Delaware court system.
The Delaware Supreme Court decided to revive a 2014 lawsuit against Zynga’s board because it decided that Delaware’s Court of Chancery made an error when it originally dismissed the case, according to Reuters.
The case revolves around allegations of company leaders acting on insider information.
“The group of insiders sold 20.3 million shares of stock for $236.7 million in a secondary offering at $12 per share, according to court records, with [Zynga controlling shareholder Mark] Pincus selling $192 million of stock. Three weeks later, the company announced its earnings, sending the stock tumbling to $8.52, and three months later it fell to $3.18,” reported Reuters.
Read the full article here.