Federal Judge Dismisses Shareholder Lawsuit Against Zynga

A Federal judge has dismissed a lawsuit filed by shareholders that the company misled them about its financial prospects. Shareholders alleged that the company inflated its stock price by concealing a drop in user activity, product launch delays and changes to the Facebook platform.

In his ruling U.S. district judge Jeffrey White said that the plaintiffs failed to include "relevant, basic factual details" to support their claims. A legal representative for the plaintiffs said that it plans to amend the complaint in order to "satisfy the court's concerns."

"The court granted our motion to dismiss the plaintiff's class action complaint in the securities litigation," a Zynga representative told Polygon. "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."

We'll have more on this story as it develops.

Source: Reuters

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