Report: Brazilian dev Vostu cuts staff after Zynga copycat settlement
Vostu, the Latin American game maker sued by Zynga over copycat allegations, has reportedly terminated an undisclosed number of employees following a settlement with the FarmVille
The two companies reached a settlement
for their respective copyright lawsuits and counterclaims last December requiring Vostu to make a monetary payment to the social game giant, and to change four of its titles to differentiate them from Zynga's releases.
This agreement ended a six-month spat between the two in which Zynga accused Vostu
of making near-identical copies its titles. It's unclear how much of Vostu's $46 million in funding raised over the years was given up in the deal.
Vostu is now laying off a portion of its staff, according to a report
from TechCrunch. As of December
, the developer had close to 600 employees spread across its Sao Paolo headquarters and offices in Buenos Aires and New York City.
Founded in 2007, Vostu currently attracts
a total of some 3.5 million monthly active players on Facebook through games like Candy Dash
and World Mysteries
. It has a sizable audience on Google's Orkut social network, too, which is very popular in Brazil.
This news follows recent troubles for another major Latin American social game developer, MetroGames (Coco Girl
) in Argentina. Along with its financial problems and layoffs, the company is facing a possible lawsuit
from former employees over extortion allegations