Cheryll Dougherty, et al. v. Zynga Inc.

District Court, N.D. California·Decided March 31, 2026·No. 3:25-cv-04051·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 CHERYLL DOUGHERTY, et al., Case No. 25-cv-04051-SI

8 Plaintiffs, ORDER GRANTING MOTION TO 9 v. TRANSFER VENUE

10 ZYNGA INC., Re: Dkt. Nos. 37, 38, 39 11 Defendant.

12 13 Now pending before the Court are multiple motions by defendant Zynga, Inc. in this 14 proposed class action case alleging violations of California consumer law and the federal Video 15 Privacy Protection Act. The Court has received briefing from both sides, including supplemental 16 briefing that the Court ordered plaintiffs provide on the question of transfer of venue. Pursuant to 17 Civil Local Rule 7-1(b), the Court finds this matter appropriate for resolution without oral argument. 18 Because this Order grants defendant’s motion to transfer venue to the Southern District of New 19 York, the Court does not reach defendant’s motions to dismiss or to stay discovery and does not 20 reach plaintiffs’ arguments regarding the enforceability of the arbitration agreement. 21 22 BACKGROUND 23 Plaintiffs Cheryll Dougherty, Delia Camargo, and Lawrence Garcia are current or former 24 California residents who previously and/or currently play(ed) Toon Blast and/or Toy Blast (“the 25 Games”), two nearly identical mobile games published by defendant Zynga, Inc. Dkt. No. 33 26 (“FAC”) ¶¶ 2, 12-14. The Games are “tile matching” games where players progress through levels 27 by selecting groups of similar tiles and clearing the board over a certain number of moves. Id. ¶¶ 30- 1 pressure players into making in-game purchases to continue playing or advance through the Games’ 2 levels.” Id. ¶ 3. Plaintiffs allege that “the Games bring Zynga revenue of more than $1 million per 3 day and have brought in more than $1 billion since their launch.” Id. ¶ 8. 4 Peak Games, based in Istanbul, Turkey, created Toy Blast in 2015 and Toon Blast in 2017. 5 Dkt. No. 37-1 (“Ungberg Decl.”) ¶ 5. Defendant Zynga acquired Peak in July 2020, and Take-Two 6 Interactive Software, Inc. (“Take-Two”) acquired Zynga in May 2022. Id. According to defendant, 7 since 2018, the Games have published notices requiring all players to agree to the operative Terms 8 of Service in order to play the Games and to make in-app purchases. Id. ¶ 15. After Zynga acquired 9 Peak Games in July 2020, the Games continued using the Peak Games terms that were in effect in 10 2018.1 Id. ¶ 21. 11 On or around January 25, 2024, a pop-up notice informed the Games’ players that the terms 12 of service would be changing. Id. ¶ 28. On February 28, 2024, the Take-Two Terms took effect. 13 Id. ¶ 29. On or after February 28, 2024, a clickwrap pop-up notice required players to select 14 “ACCEPT,” accepting the 2024 Take-Two Terms before continuing into the Games. Id. Among 15 other things, the 2024 Take-Two Terms provide for individual arbitration with JAMS under the 16 JAMS Streamlined Arbitration Rules and Procedures and provide that “mass arbitration” will take 17 place with New Era ADR under the New Era Mass Arbitration Rules. Id. ¶¶ 33-34 & Ex. B 18 § 15.5(6), (9). The 2024 Take-Two Terms contain a class action/jury trial waiver. Id. § 15.5(2). 19 The 2024 Take-Two Terms also contain a provision on “Governing Law and Jurisdiction” 20 applicable to United States residents as follows:

21 This Agreement is entered into in the State of New York and shall be governed by, and construed under, the laws of the State of New York 22 without regard to conflict of law rules. Except as otherwise expressly set out in Section 15.5, the exclusive jurisdiction for all disputes 23 between you and Take-Two are the state and federal courts located in New York County, New York, and you and Take-Two each accept 24 personal jurisdiction and waive all objections to venue in such courts. 25 Id., Ex. B § 15.1. The 2024 Take-Two Terms allow a user to opt out of the Arbitration Agreement, 26 1 There is some dispute between the parties about the applicability of the Peak Games terms, 27 stemming from prior arbitration discussions among Take-Two, plaintiff Garcia, and others 1 upon notification to Take-Two in writing “within 30 days of the date that you first accept this 2 Agreement . . . .” Id., Ex. B § 15.5(3). 3 On or around February 28, 2025, Take-Two began implementing new terms of service. Id. 4 ¶ 38. On March 28, 2025, the 2025 Take-Two Terms went into effect. Id. ¶ 39. The 2025 Take- 5 Two Terms continue to provide for individual arbitration through JAMS but change the procedures 6 for mass arbitration. The 2025 Take-Two Terms increase the threshold for how many similar cases 7 must be filed before the mass arbitration procedures take effect and provide that any mass arbitration 8 will be conducted by JAMS rather than New Era. Id., Ex. C § 17.5(6). The 2025 Take-Two Terms 9 allow the user to opt out of the Arbitration Agreement by notifying Take-Two “in writing within 30 10 days of the date that you first accept this Agreement . . . .” Id., Ex. C § 17.5(3). The Terms provide, 11 “For clarity, if you accepted a previous version of the Arbitration Agreement and did not Opt Out, 12 your Opt-Out Notice will be limited to the materially updated terms of this version.” Id. The 2025 13 Take-Two Terms contain a “Governing Law and Jurisdiction” provision nearly identical to the one 14 contained in the 2024 Take-Two Terms. See id., Ex. C § 17.1 (“. . . the exclusive jurisdiction for 15 all claims or causes of action between you and Take-Two are the state and federal courts located in 16 New York County, New York, and you and Take-Two each accept personal jurisdiction and waive 17 all objections to venue in such courts”). 18 The plaintiffs in this case all accepted the 2024 Take-Two Terms and accepted but then opted 19 out of (or attempted to opt out of) the 2025 Take-Two Terms. Plaintiffs accepted the 2024 Take- 20 Two Terms via in-Game pop-ups. Ungberg Decl. ¶¶ 58 (Dougherty accepted terms via Toon Blast 21 on June 20, 2024), 62 (Camargo accepted terms via Toy Blast on April 23, 2024), 66 (Garcia 22 accepted terms via Toon Blast on November 21, 2024). Plaintiff Camargo accepted the 2025 Take- 23 Two Terms on April 18, 2025, and opted out of the 2025 Take-Two Terms on April 25, 2025. Id. 24 ¶¶ 62-63. Plaintiff Garcia accepted the 2025 Take-Two Terms on April 17, 2025, and provided two 25 signed opt-outs dated April 15 and April 25, 2025. Id. ¶¶ 64, 66. On April 21, 2025, plaintiff 26 Dougherty accepted the 2025 Take-Two Terms. Id. ¶ 58. The FAC states that Dougherty opted out 27 of the 2025 Take-Two Terms on April 17, 2025, and that she sent the opt-out via USPS mail to 1 2025. Ungberg Decl. ¶ 59. The parties dispute whether Dougherty validly opted out of the 2025 2 Take-Two Terms during the opt-out timeframe. 3 On May 9, 2025, plaintiffs filed this suit in federal court. Dkt. No. 1. On August 19, 2025, 4 plaintiffs amended the complaint. Dkt. No. 33. In the first amended complaint, plaintiffs allege that 5 Zynga engaged in deceptive business practices that manipulated players into spending large sums 6 of money on in-app purchases in the Games. Plaintiffs also allege that Zynga violated the federal 7 Video Privacy Protection Act (“VPPA”) “by willfully sharing and disclosing to third parties the 8 personal identifying information and video viewing histories of users of its many mobile games, 9 without first obtaining consent in the manner the VPPA requires.” Id. ¶ 10. Plaintiffs, as private 10 attorneys general and on behalf of similarly situated individuals, bring claims for violations of: (1) 11 California’s Unfair Competition Law, Cal. Bus. & Prof. Code § 17200 et seq.; (2) California’s False 12 Advertising Law, Cal. Bus. & Prof. Code § 17500

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Cheryll Dougherty, et al. v. Zynga Inc., (N.D. Cal. 2026).

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