Zynga And Playdom Settle Their Legal Fight

The legal drama between social gaming rivals Zynga and Playdom is now over. The two companies say they have reached a “confidential resolution” of their ongoing litigation. Zynga had sued Playdom last fall, accusing its rival of stealing trade secrets-including documents that detailed the company’s business strategy–by recruiting Zynga employees; Zynga had received a restraining order preventing Playdom from using any of the files.

Zynga had asked a judge for damages, game royalties, and wages paid to the employees who had allegedly taken the information. The companies aren’t saying what the terms of the settlement were, but Zynga says in a statement that it is “extremely pleased.”

Disney (NYSE: DIS) purchased Playdom in a deal worth up to $763.2 million in July, and it’s possible that the purchase sped up the resolution of the case. Zynga’s statement notes that it has “great respect for Disney” and adds that it is “thankful that following its acquisition of Playdom, Disney resolved the matter to our satisfaction.”

More to come.