The decision was made by Justice Charles Ramos.
The company, Gate Five, claims the superstar backed out of a $20 million deal for a game called "Starpower: Beyoncé."
The Grammy Award-winning singer's lawyers contend they were within their rights to opt out of the deal because Gate Five didn't have its financing in place.
But the company says Beyoncé knew it was ready to sign a contract with its financier on Dec. 6, 2010 when she pulled out three days earlier.
According to the New York Post, the judge said Beyoncé should have given the company notice.