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Press release content from Business Wire. The AP news staff was not involved in its creation.

Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, 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

LOS ANGELES--(BUSINESS WIRE)--Jul 6, 2021--

Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired 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.

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If you suffered a loss on your DraftKings investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/draftkings-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

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.

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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.

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If you purchased or otherwise acquired DraftKings securities during the Class Period, you may move the Court no later than August 31, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

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/20210706005743/en/

CONTACT: Glancy Prongay & Murray LLP, Los Angeles

Charles H. Linehan, 310-201-9150 or 888-773-9224

1925 Century Park East, Suite 2100

Los Angeles, CA 90067

www.glancylaw.com

shareholders@glancylaw.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: Glancy Prongay & Murray LLP

Copyright Business Wire 2021.

PUB: 07/06/2021 04:00 PM/DISC: 07/06/2021 04:01 PM

http://www.businesswire.com/news/home/20210706005743/en