Bersntein Liebhard LLP Announces that a Securities Class Action Lawsuit Has Been Filed Against DraftKings Inc.

NEW YORK, July 6, 2021 / PRNewswire / – Bernstein Liebhard, a nationally recognized investor rights law firm, announces that a class action suit has been filed on behalf of investors who have purchased or acquired the securities of DraftKings Inc. (“DraftKings” or the “Company”) (NASDAQ: DKNG) by 23 December 2019 by June 15, 2021. The lawsuit filed in The United States District Court for the southern district of new York alleges violations of the Exchange Act of 1934.

If you have purchased DraftKings securities and / or would like to discuss your legal rights and options, please visit or contact DraftKings Class Shareholders Action Joseph R. Seidman Jr. toll free at (877) 779-1414 or [email protected].

The lawsuit alleges that throughout the class action period, defendants made essentially false and misleading statements about the company’s business, operational, and compliance policies. In particular, Defendants have made false and / or misleading statements and / or failed to disclose that: (i) SBTech (Global) Limited (“SBTech”) has had unlawful operations in the past; (ii) accordingly, the merger of DraftKings with SBTech has suspended the company from trading black market games; (iii) the foregoing increases the Company’s regulatory and criminal risks in relation to these Transactions; (iv) as a result of all of this, some of the Company’s revenues have been generated from illegal conduct and are therefore unsustainable; (v) accordingly, the benefits of the business combination dated 22nd December 2019 were exaggerated; and (vi) as a result, the Company’s public statements at all relevant times have been materially false and misleading.

On June 15, 2021, prior to the market opening, Hindenburg Research published a report entitled “DraftKings: A $ 21 billion SPAC bets it can hide its black market operations. “The report claims that one of the companies that was part of the three-way merger that brought DraftKings public, SBTech, DraftKings and its investors claimed black market gaming, money laundering and organized Hindenburg research that I had “conversations with several former employees, […] review[ed] SEC and international filings and exams in[ed] Back-end infrastructure on illegal international gambling websites[.]”Based on this information, the report concluded that” DraftKings has systematically circumvented the law and taken elaborate steps to disguise its black market dealings. “

Because of this news, DraftKings’ share price fell $ 2.11 per share, or 4.17% to close on $ 48.51 per share June 15, 2021.

If you have acquired DraftKings securities and / or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/draftkingsinc-dkng-shareholder-class-action-lawsuit-fraud-stock-406 / apply / or contact Joseph R. Seidman Jr. toll free at (877) 779-1414 or [email protected].

Bernstein Liebhard LLP has been recovering since 1993 $ 3.5 billion for its customers. In addition to representing retail investors, the firm has been hired by some of the country’s largest public and private pension funds to monitor their assets and litigate on their behalf. As a result of its success in hundreds of lawsuits and class actions, the firm has been included on the National Law Journal’s “Plaintiffs Hot List” thirteen times and on The Legal 500 for ten consecutive years.

ADVERTISING LAWYER. © 2021 Bernstein Liebhard LLP. The firm responsible for this ad is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this report im State of Connecticut is Michael S. Bigin. Past results do not guarantee or predict a similar result with respect to future matters.

Contact information
Joseph Seidmann Jr.
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
[email protected]

SOURCE Bernstein Liebhard LLP

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