The Law Offices of Frank R. Cruz reminds investors of the upcoming August 31, 2021 deadline to file a lead plaintiff motion in the case 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”).
If you are a shareholder who suffered a loss, click here to participate.
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.
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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 request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against DraftKings Inc. f/k/a Diamond Eagle Acquisition Corp. (DKNG)