The settlement marks the end of a legal battle between the game developers last year.
Zynga and video-game publisher Electronic Arts (EA) have ended the legal battle over copyright violations and employees poaching.
According to the filing by both firms at the US District Court for the Northern District of California, all the allegations and counterclaims stated in the lawsuit have been dismissed without divulging the details of the settlement terms.
In August 2012, EA sued Zynga alleging that its game 'The Ville' infringes some key elements of EA's life simulator 'The Sims Social'.
The videogame maker also claimed that the characters of The Ville comprised eight personality types ranging from an athlete to villain that reflect 'The Sims' own jock-to-scoundrel line up.
Zynga also requested an order from a federal judge to bar EA from aggressive proceedings and being intrusive with its hiring procedures.
In November last year Zynga and Facebook changed their developer agreement to allow each company to make their own games.