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One of their whales died, and they didn't disclose it to the SEC.
which whale?
Mrs. Elizabeth LeBeau of Mobile Alabama. The 7-11 where she bought her game cards may also have to close now.
I hear Zynga had an entire CS team dedicated just to her.
A cursory google search didn't turn up anything about this... anywhere I can read more?
I think it's a joke about the mobile games industry being dependent on "whales" (players that spend an absurd amount of money on IAP) and Zynga's business model being so horrible that one whale dying makes them go out of business.
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If they did actually do this, its a death sentence for Zynga. With their already declining prospects and net loss every quarter, this will drain their account and remove any route of public funding. This leaves private funding, and there might be an investor out there willing to go with a private round on Zynga, but I'd hate to see the terms on the round.
Very curious if this had any correlation with the clawback of pre-IPO shares. Essentially when Zynga wrecked the last social contract between founders and workers by taking back pay in the form of shares, they may have been doing it to restrict the effect of those workers knowledge of falling profits on the IPO price.

Mark Pincus has done more to hurt the environment of silicon valley than any figure in my recent memory.

Wow, I'd actually forgotten about that clawback, but damn, that was brutal.

Agreed. From an admittedly outsider perspective, the leadership of Zynga just seems to have exhibited a darkness at every turn.

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lie down with dogs, get up with fleas
They should really be including Pincus as a defendant. There is enough public knowledge of his shady actions surrounding the IPO that he should personally be held accountable, as opposed to the company he pumped and dumped.
They might be waiting for discovery, who knows what that will unearth.
Games like Farmville seem like the equivalent of a one-hit-wonder. Not an Oracle but a Rico Suave. People who invest in a fad should know it will fade.
Mark Pincus really should be held accountable for his shady dealings. He is a general blight on the tech industry.