Zynga execs, investment firms cash out before stock dives

[coyotes_geek]

Those are insider transactions. Nothing wrong with them. Per SEC Rule 10b5-1, those transactions need to be done at very specific times, otherwise they're illegal (what is commonly known as "insider trading").

Right. And those transactions were done at very specific times and properly do ented through SEC filings. Those following the stock knew about the transactions, or at least they all had the opportunity to know about the transactions, on the day they occurred. In fact news of the sale broke over a week before the transactions actually took place.
So I'm not really seeing the problem here.

[ElNono]

Right. And those transactions were done at very specific times and properly do ented through SEC filings. Those following the stock knew about the transactions, or at least they all had the opportunity to know about the transactions, on the day they occurred. In fact news of the sale broke over a week before the transactions actually took place.
So I'm not really seeing the problem here.

When Zynga went public in December of 2011 at $10 a share, employees and early investors were "locked up," banned from selling their shares until May 28th, 2012. But a select group of insiders got underwriters Morgan Stanley and Goldman Sachs to waive that restriction, allowing them to sell an additional $515 million worth of shares on April 3rd at $12 a pop.

This arrangement is at the heart of an insider trading lawsuit filed yesterday in San Francisco by the law firm Newman Ferrara. "Zynga's regular employees were still locked up from selling their shares. But the guys at the top, who saw what was coming down the pipe, got to cash out," said Ferrara attorney Roy Shimon. By the time the original lockup expired on May 28th, the company's share price had dropped to $6. After last week's earnings report it dropped to just over $3.

[ElNono]

That's the allegation. I'm not saying wrongdoing took place, just that it looks fishy as .

[coyotes_geek]

That's the allegation. I'm not saying wrongdoing took place, just that it looks fishy as .

Oh I definitely agree that it looks bad. I'm just not seeing anything unusual to other stocks that have IPO'd, let alone anything illegal.

[boutons_deux]

And Congress still not completely, clearly forbidden from insider trading

Congress closes loophole in stock trading law after CNN report

members of Congress thought they voted for earlier this year wasn't exactly as advertised. The STOCK Act requires that any trades of $1,000 or more made on or after July 3 have to be reported to the House and Senate within 45 days. But the House and Senate came out with two completely different interpretations of that rule.

http://www.cnn.com/2012/08/02/politi...ole/index.html

hmm, that's the REPUG-dominated House that voted as if family members could still be insider traders.

Did they decide/define what a "lobbyist" and forbid Congress from passing insider info to them? Very easy for a lobbyist to trade on Congressional insider trading and pass profits back to the Congressman.

[ElNono]

Oh I definitely agree that it looks bad. I'm just not seeing anything unusual to other stocks that have IPO'd, let alone anything illegal.

On a personal note, I think this is how companies are gutted. Management looking only after themselves while the company and it's employees rot and die. Wouldn't be surprised to see Zynga bought out by a big fish for pennies on the dollar after this.

[velik_m]

More trouble for Zynga:

http://techcrunch.com/2012/08/03/ele...y-of-the-sims/

http://www.scribd.com/doc/101954002/...omplaint-Final

[Wild Cobra]

They had an option to purchase the stock. There is no reason to purchase the stock until you are ready to sell or your options are going to expire. The fact that they purchased and sold them on the same day has absolutely nothing to do with the charge of insider trading.

True, but it makes the charge meaningless when there are other plausible reasons. To make such attacks with only cir stantial evidence is still an unethical act in itself.

[Wild Cobra]

Tell us more about how you "looked into the insider trading activity of the company"... crofl

Tell us more about how you "looked into the insider trading activity of the company"... crofl

It works both ways.

There is no evidence that this is unethical or illegal insider trading that you can show.

Again, this is the normal course of action that the three insiders I looked up acquired and sold the stocks the same day.

Do you understand stand what I'm saying? For the history that these online records cover...

Why are you all so hard headed?

There are multiple acquire and sell activities for each of them. How can you take a two year pattern and then turn around and claim the last trades were wrong?

[Wild Cobra]

That's the allegation. I'm not saying wrongdoing took place, just that it looks fishy as .

Bull .

A two year pattern with multiple identical type transactions does not make this last quarter's transaction fishy.

It's all in your mind.

You should go see a shrink.

[Wild Cobra]

When Zynga went public in December of 2011 at $10 a share, employees and early investors were "locked up," banned from selling their shares until May 28th, 2012. But a select group of insiders got underwriters Morgan Stanley and Goldman Sachs to waive that restriction, allowing them to sell an additional $515 million worth of shares on April 3rd at $12 a pop.

This arrangement is at the heart of an insider trading lawsuit filed yesterday in San Francisco by the law firm Newman Ferrara. "Zynga's regular employees were still locked up from selling their shares. But the guys at the top, who saw what was coming down the pipe, got to cash out," said Ferrara attorney Roy Shimon. By the time the original lockup expired on May 28th, the company's share price had dropped to $6. After last week's earnings report it dropped to just over $3.

They guys at the top were selling shares even before that April time. They were different classes of shares. They were acquiring and selling in December 2011 as well.

You should stop quoting/linking other people's propaganda. Go to any investment site, look at the stock ticker, then look at what the site shows for insider transactions.

Look at the patterns.

My god... Your ignorance is really showing bad.

[ElNono]

A two year pattern with multiple identical type transactions does not make this last quarter's transaction fishy.

What two year pattern? Zynga went public in December of last year...

They guys at the top were selling shares even before that time. They were different classes of shares.

You should stop quoting/linking other people's propaganda.

Those were the rules of the IPO. I didn't made them up, nor the report.

lol dumb as a rock
lol propaganda

[Wild Cobra]

What two year pattern? Zynga went public in December of last year...



Those were the rules of the IPO. I didn't made them up, nor the report.

lol dumb as a rock
lol propaganda

You're right, the online site I went to keeps records two years back. There are still multiple acquisitions and sales for those insiders from December to July.

[SnakeBoy]

They guys at the top were selling shares even before that April time.

One trade 2 weeks earlier.

http://www.insidercow.com/history/co...p?company=znga

[Wild Cobra]

One trade 2 weeks earlier.

http://www.insidercow.com/history/co...p?company=znga

Stop just looking at the propaganda. They were selling in December also. You guys make it sound as if there was only one day they unloaded.

Here are the dates of acquisitions and sales:

12/15/11
1/1/12
1/9/12
1/15/12
2/2/12
2/9/12
3/9/12
3/15/12
3/30/12
4/3/12
4/9/12
4/20/12
5/2/12
5/9/12
5/20/12
6/9/12
6/30/12
7/2/12
7/9/12
7/15/12
7/25/12

Don't believe me, don't believe the propaganda rags.

Look it up yourself dammit.

[CosmicCowboy]

I don't see why it's such a big deal that these guys sold stock. It's typical on startups to compensate talent with a load of stock options. It goes public, they get their big payday by cashing in some of their options. The thing to watch is not that they are selling stock, but what percentage of their holdings they are selling. If it's 10% that's just normal diversification. If it's 90% it's reasonable to ask yourself why they have lost faith in the earning power of farmville, words with friends, etc. I'm sure having Facebook stock take suck a public hasn't helped them.

[ElNono]

It looks fishy as because they negotiated an early release on the stock lock-out in March, to sell stock in April, before the quarter earnings, only benefiting themselves, and excluding all non-executive employees and public shareholders, which took it in the ass.

Whether there's wrongdoing or not, the court will decide, but it certainly looks like .

[CosmicCowboy]

It looks fishy as because they negotiated an early release on the stock lock-out in March, to sell stock in April, before the quarter earnings, only benefiting themselves, and excluding all non-executive employees and public shareholders, which took it in the ass.

Whether there's wrongdoing or not, the court will decide, but it certainly looks like .

I dunno...the stock opened really strong making it look like the underwriters underestimated demand. They decided to offer more stock and it got snapped up by willing buyers. I don't see the foul here. It looks to me like it was the debacle at Facebook that infected Zynga stock, not malfeasance on Zynga's part.

[Wild Cobra]

I don't see why it's such a big deal that these guys sold stock. It's typical on startups to compensate talent with a load of stock options. It goes public, they get their big payday by cashing in some of their options. The thing to watch is not that they are selling stock, but what percentage of their holdings they are selling. If it's 10% that's just normal diversification. If it's 90% it's reasonable to ask yourself why they have lost faith in the earning power of farmville, words with friends, etc. I'm sure having Facebook stock take suck a public hasn't helped them.

That's another thing. In many of these sales, they didn't sell all they acquired. They kept some.

[TeyshaBlue]

It aint getting any better over there in ZyngaVille.

http://www.macworld.com/article/1168...ms_social.html

[CosmicCowboy]

Do you guys understand that when stock options vest they immediately owe taxes on it even if they don't sell, right? If they don't have the cash they HAVE to sell some stock to satisfy uncle sam.

[Wild Cobra]

Do you guys understand that when stock options vest they immediately owe taxes on it even if they don't sell, right? If they don't have the cash they HAVE to sell some stock to satisfy uncle sam.

The middle to far left won't listen to facts. They will take any tiny thread they can try to tug on, to use their hate of on the rich, right, christian, etc.

[ElNono]

It aint getting any better over there in ZyngaVille.

http://www.macworld.com/article/1168...ms_social.html

It's only the third time it's been posted in this thread...

[TeyshaBlue]

It's only the third time it's been posted in this thread...

Unlike you, I woke up this morning and made a conscious decision to like women and bang chicks. I been busy, boy.

[TeyshaBlue]

When I'm done, I'm gonna post a link about EA suing Zynga!