Newsbrief: Following Zynga's initial public offering,
a California firm filed a lawsuit against the company, stating that Zynga failed to disclose the decline in users and revenue prior to the IPO.
A U.S. District Judge has now dismissed the lawsuit, stating that the complaint did not provide "relevant, basic factual details" to support the claims against Zyna.
As reported by Reuters, a partner representing the plaintiffs said that they were disappointed with the ruling, but that "we are confident that the case will proceed, as we believe we will more than satisfy the court's concerns when we file our amended complaint."
Although Gamasutra noted at the time that these sorts of lawsuits rarely go anywhere, they can often act as a distraction, and tend to weigh down stock at key periods.
UPDATE: A Zynga representative provided the following statement to Gamasutra regarding the court's decision:
"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."
