US federal court dismisses IPO-linked lawsuit against Zynga
A US federal judge dismissed a shareholders lawsuit filed against social game company Zynga on Tuesday, according to VentureBeat.
In the said lawsuit, shareholders accused the maker of Farmville of misleading investors about its real financial status before and after it launched a $9-billion initial public offering (IPO) in December 2011. A couple of weeks after it went public, Zynga's stock plummeted to $4.4 billion, the report detailed.
According to a Reuters report cited by VentureBeat, US District Judge Jeffrey White said the lawsuit did not have "relevant, basic factual details" to prove their allegations against the game maker and Mark Pincus, the chief executive officer (CEO) at that time.
Joseph Tabacco told Reuters that although they were disappointed with White's ruling, "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." Tabacco is a partner Berman DeValerio, the law firm that represented the plaintiffs in the case, said the report.
Zynga has yet to release a comment about the lawsuit dismissal, VentureBeat reported.