The law firm of Kessler Topaz Meltzer & Study, LLP reminds DraftKings Inc. f/ok/a Diamond Eagle Acquisition Corp.
The law firm of Kessler Topaz Meltzer & Study, LLP reminds DraftKings Inc. f/ok/a Diamond Eagle Acquisition Corp. (DKNG) – Acquire Draftkings, Inc. (DKNG) List (“DraftKings”) traders that a securities fraud class motion lawsuit has been filed on behalf of these that bought or bought DraftKings securities between December 23, 2019 and June 15, 2021, inclusive (the “Class Duration”).
Investor Closing date Reminder: Traders who bought or bought DraftKings securities right via the Class Duration may presumably also, no later than August 31, 2021, peep to be appointed as a lead plaintiff representative of the category. For added data or to study to clutch half on this litigation please contact Kessler Topaz Meltzer & Study, LLP: James Maro, Esq. (484) 270-1453; toll free at (844) 887-9500; via e-mail at [email protected]; or click on https://www.ktmc.com/draftking-class-motion-lawsuit?utm_source=PR&utm_medium=hyperlink&utm_campaign=draftking
DraftKings operates as a digital sports activities leisure and gaming firm within the U.S. It operates via two segments, Industry-to-User and Industry-to-Industry (B2B). DraftKings used to be incorporated in Nevada as DEAC NV Merger Corp., a unconditionally owned subsidiary of its criminal predecessor, DEAC, a obvious reason acquisition firm. On April 23, 2020, DEAC consummated transactions contemplated by a Industry Aggregate Agreement (the “Industry Aggregate”) dated December 22, 2019, as amended on April 7, 2020. In connection therewith, DEAC merged with and into DraftKings, whereby DraftKings survived the merger and become the successor issuer to DEAC. Furthermore, DraftKings bought all the issued and outstanding portion capital of SBTech (International) Restricted (“SBTech”). SBTech is a chubby-carrier B2B turnkey know-how supplier with omni-channel sports activities having a guess alternatives, procuring and selling services and products, and marketing and marketing and marketing and bonus tools powering authorized sports activities having a guess and on-line gaming producers. At some point soon of the Class Duration, the defendants touted the acquisition of SBTech and its industry.
The very fact about SBTech used to be revealed on June 15, 2021, when Hindenburg Study (“Hindenburg”) published a record alleging that DraftKings’ merger with SBTech uncovered DraftKings to dealings in dusky-market gaming. Citing “conversations with more than one broken-down workers, a evaluation of SEC and world filings, and inspection of aid-end infrastructure at illicit world gaming web sites,” Hindenburg alleged that “SBTech has a prolonged and ongoing record of working in dusky markets,” estimating that 50% of SBTech’s earnings is from markets where gambling is banned.”
Following this data, DraftKings’ stock tag fell $2.11 per portion, or 4.17%, to shut at $48.51 per portion on June 15, 2021.
The complaint alleges that within the direction of the Class Duration, the defendants made inaccurate and/or deceptive statements and/or failed to disclose that: (1) SBTech had a history of illegal operations; (2) accordingly, DraftKings’ merger with SBTech uncovered it to dealings in dusky-market gaming; (3) the foregoing elevated DraftKings’ regulatory and criminal risks with respect to these transactions; (4) as a results of the total foregoing, DraftKings’ revenues had been, in segment, derived from illegal conduct and thus unsustainable; (5) accordingly, the advantages of the Industry Aggregate had been overstated; and (6) as a consequence, DraftKings’ public statements had been materially inaccurate and deceptive in any respect relevant times.
DraftKings traders may presumably also, no later than August 31, 2021 , peep to be appointed as a lead plaintiff representative of the category via Kessler Topaz Meltzer & Study, LLP or varied counsel, or may presumably also bewitch to effect nothing and remain an absent class member. A lead plaintiff is a representative salvage together who acts on behalf of all class participants in directing the litigation. In repeat to be appointed as a lead plaintiff, the Court docket must resolve that the category member’s state is regular of the claims of varied class participants, and that the category member will adequately symbolize the category. Your means to portion in any recovery is now not plagued by the resolution of whether or now not to aid as a lead plaintiff.
Kessler Topaz Meltzer & Study, LLP prosecutes class actions in declare and federal courts within the direction of the nation piquant securities fraud, breaches of fiduciary tasks and varied violations of declare and federal law. Kessler Topaz Meltzer & Study, LLP is a riding force within the assist of company governance reform, and has recovered billions of bucks on behalf of institutional and particular person traders from the US and across the arena. The firm represents traders, patrons and whistleblowers (deepest voters who record false practices in opposition to the authorities and portion within the recovery of authorities greenbacks). The complaint on this motion used to be now not filed by Kessler Topaz Meltzer & Study, LLP. For more data about Kessler Topaz Meltzer & Study, LLP please bound to www.ktmc.com.
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