For reference purposes Zynga went public in December 2011 at $10/share. The stock peaked in early March 2012 at about $16. Since they it has been in free fall notwithstanding Jim Cramers admonitions back in March "the force is with Zynga". The accused insiders were allowed to dump their holdings 43 million shares at $12/share.
In case you were wondering Zynga is now $3/share. How lovely. This is yet another crony capitalist story to pile on top of the existing heap. But I enjoyed this story for its sidebar. That sidebar is one Henry Blodget the former BA in english proof reader, turned internet guru, turned securities fraudster, turned history revisionist, turned born again financial messiah.
Here's what banned for life from the securities industry Blodget had to contribute to the discussion about this cess pool our capital markets, in particular the IPO market has become and that he knows all too well;
"I know many of these folks personally, including at the company's underwriters, and like and respect them. I think the last thing they would intentionally do is unload stock when they thought it was about to crash—especially when the amount they made in the sale, though huge, is still relative chicken feed for them.
Also, all of these folks only sold a fraction of their holdings, so they've been hammered along with the rest of Zynga shareholders by the subsequent collapse."
What more does one say about this. So because its chicken feed we should ignore it? Because Blodget knows and respects them they get a pass? Too bad Carlo Ponzi wasn't around for Bernie Madoff or his legal could have called him a character witness.
He went on to claim;
"I also know from personal experience (unfortunately) just how quickly things that seem to be going well can fall apart."