Zynga's request to dismiss scam suit denied by federal judge

It looks like Zynga won't get off the hook that easy. The omnipotent social gaming company requested a dismissal of a recent class action lawsuit claiming that Zynga intentionally allowed and profitted from alleged scams offering its players virtual currency, Gamasutra reports. The plaintiff, Rebecca Swift, filed the suit in Oakland, Calif. court under the accusation that Zynga, through online advertising firm Adknowledge, charged her account for $200 worth of products and services without her consent after she signed up for free YoCash in YoVille.

Swift claims that the company was not "a neutral website that merely allows third parties to post advertisements" and is a "direct participant in the fraudulent transactions," Gamasutra reports. Better yet, "the design, layout, and format of the special offers," according to the court document, is on Zynga's shoulders as they appear within the company's games and not just on the web page.

She went on to claim that Zynga intentionally designs its games to draw players in to the act of either buying virtual currency or resorting to these allegedly fraudulent offers by making their games more enjoyable through spending the cash, according to Gamasutra. Ultimately, U.S. District Judge Sandra Armstrong denied both Zynga's and Adknowledge's requests to dismiss the case under the impression that Swift had "sufficiently alleged the particular circumstances of defendants' fraudulent scheme."

This is far from the first time the company has been the target of a class action lawsuit. Due to Facebook's recent privacy breach caused by third party applications like Zynga's games, the company is also facing a suit for sharing private player data such as Facebook User IDs to third-party advertisers. In other words, Zynga is going to have its hands full when the Swift v. Zynga case resumes over a "telephonic case management conference" in February 2011.

What do you think will come of this case next year? How do you think Zynga will handle two class action lawsuits? Sound off in the comments. Add Comment.