Delaware Court revives case over Pincus's Zynga stock sale

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By Tom Hals
| WILMINGTON, Del.

WILMINGTON, Del. The Delaware Supreme Court revived a lawsuit against Zynga Inc’s (ZNGA.O) controlling shareholder, Mark Pincus, and fellow board members for allegedly allowing leaders of the social gaming company to act on inside information and dump stock before it crashed in 2012.

Delaware’s high court ruled that the Court of Chancery erred when it dismissed the lawsuit against the board of Zynga, which created the online game Farmville, in February for procedural reasons.

The ruling clears the way for the 2014 lawsuit by shareholder Thomas Sandys to proceed to discovery and trial, or for new motions to dismiss. Neither court has considered the merits of the allegations.

A Zynga spokeswoman declined to comment.

Sandys’ lawsuit alleged that Zynga’s board exempted top managers and directors, including former Chief Executive…

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