The Supreme court of the state of Delaware decided to resume the case against Mark Pincus and several owners of a controlling stake in the giant social gaming company Zynga. They allegedly used insider information to sell their shares on the eve of their rapid depreciation in 2012.
The U.S. Supreme court ruled that a mistake was made when the judicial office rejected the claim of one of shareholders of Thomas Sandison against the Council Zynga in 2014. He was sure that they sold 20.3 million shares at $12 apiece, earning them a total profit of $236 million (according to shipping documents, this sum equals $192 million). Three weeks later, Zynga released information about their income, which led to the fall in the value of their shares to $8.52, after 3 months – up to $3.18. Sandys is interpreted as the illegal manipulation of securities and prepared a lawsuit, but the lower court of Delaware, after talking with the management company, decided that he had provided insufficient evidence of illegal actions of the owners of Zynga and did not pursue it.
The high court decided that it was appropriate to question not three, but six members of the Board of Directors that could be involved in this Scam. Special attracted the attention of Ellen Siminoff, whose husband is part owner of the aircraft together with Pincus and William Gordon, John Daarom – together they are partners in the venture capital firm – Kleiner Perkins Caufield & Byers. This office is one of the largest investors in Zynga together with Kings Lane, co-founder, which is the wife of Pincus.
Chief justice Leo Strain believes that such a close relationship to the Board of Directors of the developer make it impossible for them to impartially testify in this case. Whether there has been a glaring instance of corruption and "cronyism" or just a coincidence – time will tell. Now the value of one share Zynga on the Nasdaq stock exchange is estimated at $2.9.
It is noteworthy that this is not the first case when shareholders of major gaming companies accused of fraud with shares and insider information. A few weeks in that I was accused several officers of the highest rank in Ubisoft.
reference source: https://leogaming.net/ru/site/news/vladelcev-zynga-vnov-obvinili-v-mahinaciyah-s-akciyami