{"id":509873,"date":"2021-07-06T15:11:57","date_gmt":"2021-07-06T19:11:57","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/gainey-mckenna-egleston-announces-a-class-action-lawsuit-has-been-filed-against-draftkings-inc-dkng\/"},"modified":"2021-07-06T15:11:57","modified_gmt":"2021-07-06T19:11:57","slug":"gainey-mckenna-egleston-announces-a-class-action-lawsuit-has-been-filed-against-draftkings-inc-dkng","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/gainey-mckenna-egleston-announces-a-class-action-lawsuit-has-been-filed-against-draftkings-inc-dkng\/","title":{"rendered":"Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against DraftKings Inc. (DKNG)"},"content":{"rendered":"
\n

NEW YORK, July 06, 2021 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against DraftKings Inc. (f\/k\/a Diamond Eagle Acquisition Corp.) (\u201cDEAC\u201d, \u201cDraftKings\u201d, or the \u201cCompany\u201d) (NASDAQ: DKNG) in the United States District Court for the Southern District of New York on behalf of those who purchased or otherwise acquired DraftKings publicly traded securities between December 23, 2019 and June 15, 2021, inclusive (the \u201cClass Period\u201d).<\/p>\n

On April 23, 2020, DEAC completed certain transactions (the \u201cBusiness Combination\u201d) through which DraftKings became a public company and acquired SBTech Global Limited (\u201cSBTech\u201d).<\/p>\n

The Complaint alleges that Defendants made false and\/or misleading statements and\/or failed to disclose that: (i) SBTech had a history of unlawful operations; (ii) accordingly, DraftKings\u2019 merger with SBTech exposed the Company to dealings in black-market gaming; (iii) the foregoing increased the Company\u2019s regulatory and criminal risks with respect to these transactions; (iv) as a result of all the foregoing, the Company\u2019s revenues were, in part, derived from unlawful conduct and thus unsustainable; (v) accordingly, the benefits of the Business Combination were overstated; and (vi) as a result, the Company\u2019s public statements were materially false and misleading at all relevant times.<\/p>\n

On June 15, 2021, Hindenburg Research<\/em> (\u201cHindenburg<\/em>\u201d) published a report alleging that the Company\u2019s merger with SBTech exposed DraftKings to dealings in black-market gaming. Citing \u201cconversations with multiple former employees, a review of Securities and Exchange Commission and international filings, and inspection of back-end infrastructure at illicit international gaming websites,\u201d Hindenburg<\/em> alleged that \u201cSBTech has a long and ongoing record of operating in black markets,\u201d estimating that 50% of SBTech\u2019s revenue is from markets where gambling is banned.\u201d Following publication of the Hindenburg <\/em>report, DraftKings\u2019 stock price fell $2.11 per share, or 4.17%, to close at $48.51 per share on June 15, 2021.<\/p>\n

Investors who purchased or otherwise acquired shares of DraftKings during the Class Period should contact the Firm prior to the August 31, 2021 <\/em><\/strong>lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.\u00a0 If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com<\/u><\/a> or gegleston@gme-law.com<\/u><\/a>.<\/p>\n

Please visit our website at http:\/\/www.gme-law.com<\/u><\/a> for more information about the firm.<\/p>\n


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<\/div>\n","protected":false},"excerpt":{"rendered":"

NEW YORK, July 06, 2021 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against DraftKings Inc. (f\/k\/a Diamond Eagle Acquisition Corp.) (\u201cDEAC\u201d, \u201cDraftKings\u201d, or the \u201cCompany\u201d) (NASDAQ: DKNG) in the United States District Court for the Southern District of New York on behalf of those who purchased or otherwise acquired DraftKings publicly traded securities between December 23, 2019 and June 15, 2021, inclusive (the \u201cClass Period\u201d). On April 23, 2020, DEAC completed certain transactions (the \u201cBusiness Combination\u201d) through which DraftKings became a public company and acquired SBTech Global Limited (\u201cSBTech\u201d). The Complaint alleges that Defendants made false and\/or misleading statements and\/or failed to disclose that: (i) SBTech had a history of unlawful … <\/p>\n

Continue reading “Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against DraftKings Inc. (DKNG)”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-509873","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nGainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against DraftKings Inc. 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