A California state court denied AppLovin's request for a temporary restraining order that would block Unity Technologies from protecting, using or disclosing its data.

AppLovin had argued that Unity violated an agreement between the two companies, as well as a California trade-secrets law, by simultaneously bidding in AppLovin's advertising auctions and running its own performance-advertising business.

"Unity is abusing its position as a bidder in AppLovin's platform to steal AppLovin's Protected Data and using that misappropriated information to obtain an unfair advantage as AppLovin's competitor," AppLovin wrote in its request for a temporary restraining order.

That request was denied Thursday by a judge in the San Francisco Superior Court following a hearing, according to a court docket.

Shares of AppLovin were down 1.1% at $278.21 in Friday morning trading, after touching a 52-week low of $266.84 earlier in the session.

The stock had already been trading down after Wells Fargo published a note on Tuesday arguing that accelerating growth in the company's web-tracking pixel appeared to be coming from low-to-no traffic sites in Asia, suggesting some sort of data error.

AppLovin's underlying claims against Unity remain unresolved, StoneX analyst Mike Hickey noted Friday morning.