Zynga Executives And Investors Facing Insider Trading Lawsuit

by Kyle Hilliard on Jul 31, 2012 at 03:39 PM

Zynga recently experienced a crash in its stock, which was preceded by many of the company's investors and executives cashing out its stock investments in the company for huge sums. Now the company is facing a number of insider trading lawsuits.

The simplified version of the issue here is that investors and executives of Zynga, including founder Marc Pincus and COO John Schappert, all sold their stock at, "exactly the right time," right before the Zynga stock crashed, according to Business Insider's Henry Blodget, which is suspect. Those who cashed out their stock are now facing five lawsuits with accusations of insider trading. The assumed insiders made approximately $516 million before the stock crashed.

For more, check out our previous story:

Zynga Insiders Dumped 43 Million Shares Before Stock Crashed

[via Joystiq]