Zynga Inc. Derivative Litigation
In the Court of Chancery of the State of Delaware
C.A. No. 9512-CB
TO: ALL CURRENT STOCKHOLDERS OF ZYNGA INC. ("Zynga")
THE BELOW CONTAINS ONLY A SUMMARY OF VARIOUS TERMS OF THE SETTLEMENT AND DOES NOT PURPORT TO BE A COMPREHENSIVE DESCRIPTION OF THE SETTLEMENT’S TERMS. THE COMPLETE TERMS AND CONDITIONS OF THE SETTLEMENT ARE SET FORTH IN DETAIL IN THE STIPULATION, WHICH CAN BE ACCESSED IN THE DOCUMENTS SECTION OF THIS WEBSITE.
Briefly stated, under the Settlement, the Insurers have agreed to pay Zynga $12 million (the “Settlement Amount”) following approval of the Settlement by the Court, in exchange for a release of claims (further described below) and the dismissal of the Action with prejudice. The Parties further intend that the Settlement and the entry of an order and final judgment in connection therewith will bar, by the doctrine of res judicata and otherwise, (i) all of the claims belonging to Zynga that are released as part of the Settlement, and (ii) all claims raised in the now-dismissed California Derivative Actions. The Individual Defendants are not making, and will not make, any payments in connection with the Settlement of the Action.
Because the Action was brought for the benefit of Zynga, if the court approves the settlement, any monetary benefit or recovery in the litigation (whether from this or any settlement or through a judgment in favor of the Plaintiff) will go to Zynga. Zynga stockholders will not receive any direct payment as a result of the Settlement and will not need to fill out any kind of claims form as a result of the Settlement.
RSUI, one of the Insurers that is paying a portion of the Settlement Amount, has raised certain coverage defenses under its insurance policy. In compromise of the coverage dispute, Zynga has agreed to pay covered defense costs incurred in connection with the claim, up to a total of $750,000. Such contribution, together with the RSUI settlement payment, shall by agreement of the Insurers and the Parties, be deemed to exhaust the remaining limits of liability in the RSUI Policy.
The Settlement is contingent on receiving approval from the Court.
The Settlement Hearing will be held on January 17, 2019, at 1:30 p.m. in the Leonard L. Williams Justice Center, Court of Chancery, 500 North King Street, Wilmington, Delaware 19801.
For additional information, please call: Toll-Free +1 (866) 406-2286