Zynga’s IPO lawsuit dismissed


The U.S. District Court of San Francisco has dismissed a lawsuit against Zynga, which accused the company of misleading investors and inflating the value of its stock price before and after its 2011 IPO.

As reported by re/code, the complaint alleged that Zynga had failed to express how closely related Zynga’s success is to the overall success of the Facebook gaming platform. That is, how drops in user numbers and revenue on Facebook would negatively impact Zynga’s market performance.

Zynga released a statement on Tuesday, in response to the ruling.

“Today the court granted our motion to dismiss the plaintiff’s class action complaint in the securities litigation. We are pleased with today’s order and continue to believe in the merits of our defense. The focus for Zynga is on our forward-looking business and delivering on our 2014 goals of growing and sustaining our proven franchises and creating new hits.”

Despite recent difficulties, Zynga has two current success stories on Facebook, as it changed the names of two games – Ninja Kingdom and Puzzle Charms – resulting in increased user numbers in both games.