By Daniel Webster, dWeb.News
SAN DIEGO (PRNewswire/ – DraftKings Inc. (NASDAQ : DKNG) is being sued by DraftKings Inc. (“DEAC”) for violating the Securities Exchange Act of 1934. The lawsuit seeks to represent DraftKings investors who purchased DraftKings securities during the “Class Period” (December 23, 2019 – June 15, 2021 inclusive). DraftKings class action lawsuit, Rodriguez v. DraftKings Inc. (f/k/a Diamond Eagle Acquisition Corp.), No. 21-cv-04739) was filed on July 2, 2021 in New York’s Southern District. It is assigned to Judge Paul A. Engelmayer.
Click here to submit your information if you have suffered significant losses and would like to be the lead plaintiff in the DraftKings lawsuit. You can also reach attorney J.C. Sanchez at Robbins Geller by calling 800/449-4900, or via e mail at [email protected]. The court must receive the lead plaintiff motions in the DraftKings class-action lawsuit by August 31, 2021.
CASE ALLEGATIONS DraftKings was founded in Nevada as DEAC NV Merger Corp. It is a wholly-owned subsidiary of DEAC, its legal predecessor. This subsidiary is known as a special purpose acquisition corporation or SPAC. DraftKings purchased all of the outstanding and issued share capital of SBTech Limited (“SBTech”) on April 23, 2020. DraftKings became a wholly-owned subsidiary of SBTech.
DraftKings alleged that defendants made misleading and false statements throughout the Class Period.
Hindenburg Research published a report on DraftKings on June 15, 2021. It claimed that DraftKings’ merger was a result of dealings in black market gaming. Hindenburg claimed that SBTech had a long and continuing history of operating in black markets, citing conversations with former employees, a review by the [U.S. Securities and Exchange Commission and] International filings, and inspections of back-end infrastructure at illegal international gaming websites. He also stated that half of SBTech’s revenue comes from countries where gambling is prohibited. DraftKings stock price plunged by more than 4% in this news, causing financial losses for investors.
Robbins Geller Rudman & Dowd LLP have established a dedicated SPAC Task Force. This Task Force will protect investors in blank-check companies and seek redress from corporate malfeasance. The SPAC Task Force, which includes experienced investigators, litigators, and forensic accountants is dedicated to prosecuting and rooting out fraud for injured SPAC investors. Investors face unique risks due to the rise of blank check financing. Robbins Geller Rudman & Dowd LLP’s SPAC Task Force is the forefront of ensuring integrity and honesty in this rapidly changing investment market.
THE LEAD PLAINTIFF PROCESS: DraftKings Securities Traders can apply to be named as lead plaintiffs in a DraftKings class action lawsuit under the Private Securities Litigation Reform Act of 2015. The lead plaintiff is usually the movant with the greatest financial stake in the relief sought by a putative class, who is also typical and sufficient of the putative classes. The DraftKings class action lawsuit is directed by the lead plaintiff. The DraftKings class-action lawsuit can be litigated by the lead plaintiff choosing any law firm of its choosing. The ability of an investor to share in any future recovery of DraftKings is not dependent on serving as the lead plaintiff.
ROBBINS GELLER RUDMAN & DOW LLP: Robbins Geller Rudman & Dowd LLP has the largest U.S. law office representing investors in securities class actions. Robbins Geller attorneys have secured many of the largest shareholder recoveries ever, including the largest ever securities class action recovery – $7.2 Billion – in In Re Enron Corp. Sec. Litig. Litigation. For more information, please visit https://www.rgrdlaw.com/firm.html
Advertising attorney. Past results do not guarantee future results.
Services can be performed by attorneys at any of our offices.
Contact: Robbins Geller Rudman & Dowd LLP 655 W. Broadway San Diego, CA 92101 J.C. Sanchez 800-449-4900 [emailprotect]
SOURCE Robbins Geller Rudman & Dowd LLP
Similar Links http://www.rgrdlaw.com/
More dWeb.News Money Banking Finance at https://dweb.news/news-sections/banking-money-finance-investment-news/