AP NEWS
ADVERTISEMENT
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of DraftKings Inc. f/k/a Diamond Eagle Acquisition Corp. (DKNG) Investors

July 6, 2021 GMT

BENSALEM, Pa.--(BUSINESS WIRE)--Jul 6, 2021--

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased DraftKings Inc. (“DraftKings” or the “Company”) f/k/a Diamond Eagle Acquisition Corp. (“DEAC”) (NASDAQ: DKNG ) securities between December 23, 2019 and June 15, 2021, inclusive (the “Class Period”). DraftKings investors have until August 31, 2021 to file a lead plaintiff motion.

Investors suffering losses on their DraftKings investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

ADVERTISEMENT

On April 23, 2020, DEAC completed certain transactions (the “Business Combination”) through which DraftKings Inc. became a public company and acquired SBTech Global Limited (“SBTech”).

On June 15, 2021, before the market opened, Hindenburg Research published a report calling DraftKings “a $21 billion SPAC betting it can hide its black-market operations.” The report cited concerns over its merger with SBTech, a Bulgaria-based gaming technology company that allegedly deals in black market gaming, money laundering, and organized crime. Hindenburg Research estimated that 50% of SBTech’s revenue comes from markets where gambling is banned.

On this news, DraftKings’s stock price fell $2.11 per share, or approximately 4.17%, to close at $48.51 per share on June 15, 2021, thereby injuring investors.

The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) SBTech had a history of unlawful operations; (2) accordingly, DraftKings’ merger with SBTech exposed the Company to dealings in black-market gaming; (3) the foregoing increased the Company’s regulatory and criminal risks with respect to these transactions; (4) as a result of all the foregoing, the Company’s 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, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

ADVERTISEMENT

If you purchased DraftKings securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210706005669/en/

CONTACT: Law Offices of Howard G. Smith

Howard G. Smith, Esquire

215-638-4847

888-638-4847

howardsmith@howardsmithlaw.com

www.howardsmithlaw.com

KEYWORD: CALIFORNIA PENNSYLVANIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: Law Offices of Howard G. Smith

Copyright Business Wire 2021.

PUB: 07/06/2021 12:43 PM/DISC: 07/06/2021 12:43 PM

http://www.businesswire.com/news/home/20210706005669/en