Investors With Substantial Losses Have Option to Direct the DraftKings Inc. Course Action Lawsuit

SAN DIEGO, July 16, 2021–(Business enterprise WIRE)–The DraftKings class action lawsuit rates DraftKings (NASDAQ: DKNG) and selected of DraftKings and Diamond Eagle Acquisition Corp.’s (“DEAC”) leading executives with violations of the Securities Trade Act of 1934 and seeks to represent purchasers of DraftKings securities involving December 23, 2019 and June 15, 2021, inclusive (the “Course Time period”). The DraftKings class action lawsuit (Rodriguez v. DraftKings Inc. f/k/a Diamond Eagle Acquisition Corp., No. 21-cv-05739) was commenced on July 2, 2021 in the Southern District of New York and is assigned to Choose Paul A. Engelmayer.

If you suffered substantial losses and desire to serve as direct plaintiff of the DraftKings class action lawsuit, be sure to provide your facts by clicking listed here. You can also speak to legal professional J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected] Guide plaintiff motions for the DraftKings course action lawsuit will have to be filed with the courtroom no afterwards than August 31, 2021.

Situation ALLEGATIONS: DraftKings was included in Nevada as DEAC NV Merger Corp., a wholly owned subsidiary of its legal predecessor, DEAC, a unique goal acquisition organization, or SPAC. On April 23, 2020, DEAC consummated transactions and, in connection therewith, DraftKings obtained all of the issued and outstanding share cash of SBTech (World) Restricted (“SBTech”). SBTech became a wholly owned subsidiary of DraftKings.

The DraftKings class action lawsuit alleges that, all through the Course Period of time, defendants made false and deceptive statements and failed to disclose that: (i) SBTech experienced a record of unlawful functions (ii) accordingly, DraftKings’ merger with SBTech exposed DraftKings to dealings in black-industry gaming (iii) this greater DraftKings’ regulatory and criminal challenges with regard to these transactions (iv) as a consequence, DraftKings’ revenues had been, in component, derived from illegal perform and hence unsustainable (v) appropriately, the advantages of the SPAC merger have been overstated and (vi) consequently, DraftKings’ public statements have been materially untrue and misleading at all related periods.

On June 15, 2021, Hindenburg Investigation printed a report relating to DraftKings, alleging that DraftKings’ merger with SBTech exposed DraftKings to dealings in black-industry gaming. Citing “discussions with various former personnel, a assessment of [U.S. Securities and Exchange Commission and] intercontinental filings, and inspection of back-end infrastructure at illicit global gaming websites,” Hindenburg alleged that “SBTech has a prolonged and ongoing report of running in black markets,” estimating that 50% of SBTech’s revenue is from marketplaces in which gambling is banned. On this news, DraftKings’ stock rate fell more than 4%, harmful buyers.

Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC Job Force to safeguard buyers in blank verify companies and look for redress for company malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Pressure is committed to rooting out and prosecuting fraud on behalf of injured SPAC buyers. The increase in blank look at financing poses unique pitfalls to buyers. Robbins Geller Rudman & Dowd LLP’s SPAC Undertaking Pressure signifies the vanguard of making certain integrity, honesty, and justice in this quickly establishing financial investment arena.

THE Lead PLAINTIFF Course of action: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased DraftKings securities all through the Class Period to look for appointment as lead plaintiff in the DraftKings course motion lawsuit. A guide plaintiff is typically the movant with the best fiscal interest in the relief sought by the putative course who is also typical and suitable of the putative class. A lead plaintiff functions on behalf of all other course associates in directing the DraftKings class action lawsuit. The guide plaintiff can pick a law firm of its choice to litigate the DraftKings course motion lawsuit. An investor’s potential to share in any opportunity foreseeable future restoration of the DraftKings course action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the greatest U.S. legislation company symbolizing investors in securities class actions. Robbins Geller attorneys have attained several of the biggest shareholder recoveries in record, which includes the premier securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Course Motion Companies Prime 50 Report rated Robbins Geller first for recovering $1.6 billion for buyers final year, additional than double the amount recovered by any other securities plaintiffs’ agency. Please check out https://www.rgrdlaw.com/company.html for more facts.

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Contacts

Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
[email protected]