Class-Action Suit Against Zynga, Facebook Dropped
Rebecca Swift, the lead plaintiff in a class-action lawsuit filed against social game developer Zynga and Facebook for allegedly profiting from misleading and scam-like virtual currency offers, withdrew her suit but plans to pursue the case.
The lawsuit stems from lead generation advertisements included in social games like FarmVille and Mafia Wars that offer in-game cash in exchange for filling out surveys, signing up for subscriptions, downloading applications, and participating in other activities. Users began complaining late last year that some of these third-party offers resulted in unauthorized charges appearing in their credit cart and cell phone bills.
In Swift's case, she says she lost around $200 due to these offers. She alleges that she signed up for a trial of green tea supplement shipments in order to receive virtual currency in Zynga's YoVille. Though the ads offered an option to cancel within 15 days, Swift says the company refused to honor her request and charged her $165. She adds that another company charged her $30 without her consent after she entered her mobile number in for another offer.
Law firm Kershaw, Cutter & Ratinoff brought the case on Smith's behalf and filed the suit with a federal district court in Northern California last November. Her legal papers do not specify why she withdrew her lawsuit, but according to marketing news site MediaPost, legal experts believe Facebook and Zynga have a strong defense under the Communications Decency Act, which protects web publishers from liability for content they didn't create.
Zynga filed a motion to dismiss Swift's lawsuit last month and claimed that it's protected by the Communications Decency Act: "All of Swift's claims are based on content created or developed by third party advertisers, not Zynga." Court documents show that her suit was dismissed without prejudice, so Swift could re-file it if she decides to. KCR attorney John Parker Jr. says she'll either amend her complaint against Zynga or oppose the motion to dismiss the lawsuit in the next two weeks.



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