Playdom-Disney Settles Litigation With Zynga

Posted Nov 23, 2010

The Walt Disney Company (NYSE:DIS) and their subsidiary Playdom has settled a lawsuit with Zynga. Zynga sued Playdom for misappropriation of trade secrets, breach of contract, breach of the duty of loyalty, tortious interference with contracts, etc. The defendants in this lawsuit also includes four ex-Zynga and some Playdom employees.

On the day that Zynga filed the lawsuit, they filed a temporary restraining order against Playdom. Playdom was prohibited from using any data from Zynga. Playdom had hired some of Zynga’s employees that supposedly had some trade secrets and access to proprietary documents.

Disney ended up buying Playdom and ended up settling with Zynga before the situation went to trial. “Today, Zynga Game Network, Inc. and Playdom announced that they have reached a confidential resolution of their litigation. -Zynga and Playdom” said both companies in a joint statements.

Below is a statement from Zynga General Counsel Reggie Davis:

?Zynga is extremely pleased with the final resolution of its trade secret suit against Playdom and various individuals. The settlement reflects the very serious nature of the conduct involved, as reflected by the preliminary injunction, restraining orders, and contempt order issued by the Santa Clara Superior Court. We have great respect for Disney and are thankful that following its acquisition of Playdom, Disney resolved the matter to our satisfaction.? Reggie Davis, General Counsel, Zynga