A California law firm representing a stockholder has filed a class-action lawsuit against Zynga accusing the game publisher of failing to disclose a rapid decline in users and revenue.
The San Francisco-based gaming giant behind “FarmVille” and other Facebook games stunned Wall Street last week 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 because the No. 1 social network relies on Zynga for roughly 15 percent of its revenue.
In its lawsuit submitted late Monday, the law firm Kessler Topaz Meltzer & Check 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 Tuesday.