Zynga Inc., the popular gaming company, which rose to fame with “Farmville” has finally decided to put an end to the litigation charges against it by settling at $23 million or Rs. 146 crore. The company was charged for making false statements to the shareholders about their business prospect during their initial public offering in December 2011, reports Thomson Reuters.
While releasing the quarterly report on Friday, the company said that they have reached the settlement through mediation this week.
The company even mentioned that the settlement will not make any negative impact on the finances of the company as insurers would bear the entire responsibility of the payout. Zynga though initially gained immense success in the online gaming world started struggling after they failed to design games as popular as Farmville.
According to the reports, the company did not mention on how the changes made in Facebook platform would affect their demand, which led to the lawsuit. Though the company has publicly declared about the settlement, it is not recorded in the records of court and it will take a few months to get complete judicial approval in the case. Once the things are sorted, the company may expect to see some rise in the profit. … Read the rest