Shareholder Alert

Kessler Topaz Meltzer & Check, LLP Reminds Shareholders of Securities Fraud Class Action Lawsuit Filed Against DraftKings Inc. - Seite 2

The Class Period commences on December 23, 2019, when DraftKings issued a press release announcing the Business Combination. Throughout the Class Period, the defendants touted the acquisition of SBTech and its business.

The truth about SBTech was revealed on June 15, 2021, when Hindenburg Research (“Hindenburg”) published a report alleging that DraftKings’ merger with SBTech exposed DraftKings to dealings in black-market gaming. Citing “conversations with multiple former employees, a review of SEC and international filings, and inspection of back-end infrastructure at illicit international gaming websites,” Hindenburg alleged that “SBTech has a long and ongoing record of operating in black markets,” estimating that 50% of SBTech’s revenue is from markets where gambling is banned.

Following this news, DraftKings’ stock price fell $2.11 per share, or 4.17%, to close at $48.51 per share on June 15, 2021.

The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) SBTech had a history of unlawful operations; (2) accordingly, DraftKings’ merger with SBTech exposed it to dealings in black-market gaming; (3) the foregoing increased DraftKings’ regulatory and criminal risks with respect to these transactions; (4) as a result of all the foregoing, DraftKings’ revenues were, in part, derived from unlawful conduct and thus unsustainable; (5) accordingly, the benefits of the Business Combination were overstated; and (6) as a result, DraftKings’ public statements were materially false and misleading at all relevant times.

DraftKings investors may, no later than August 31, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.