DKNG INVESTOR ALERT: Investors With Substantial Losses Have Opportunity to Lead the DraftKings Inc. Class Action Lawsuit

SAN DIEGO–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP announces that the buyers of DraftKings Inc. (NASDAQ: DKNG) have until August 31, 2021 to seek appointment as lead plaintiff in the DraftKings class action. DraftKings Inc.’s class action lawsuit alleges DraftKings and certain executives at DraftKings and Diamond Eagle Acquisition Corp. (“DEAC”) for violating the Securities Exchange Act of 1934 and seeking to represent buyers of DraftKings securities between December 23, 2019 and June 15, 2021, inclusive of (the “Class Period”). The DraftKings class action lawsuit (Rodriguez v. DraftKings Inc. f / k / a Diamond Eagle Acquisition Corp., No. 21-cv-05739) was initiated in the Southern District of New York on July 2, 2021 and is assigned to Judge Jud Paul A. Engelmayer.

If you have suffered significant losses and wish to serve as the lead plaintiff in the DraftKings class action, please provide your information by clicking here. You can also contact Attorney JC Sanchez of Robbins Geller by phone at 800 / 449-4900 or by email at [email protected]. Lead plaintiffs’ motions for the DraftKings class action must be filed with the court by August 31, 2021 at the latest.

CASE ALERT: DraftKings was founded in Nevada as DEAC NV Merger Corp. founded, a wholly owned subsidiary of its legal predecessor DEAC, a special purpose vehicle for acquisitions or SPAC. On April 23, 2020, DEAC completed transactions and, in connection therewith, DraftKings acquired all of the issued and outstanding share capital of SBTech (Global) Limited (“SBTech”). SBTech became a wholly owned subsidiary of DraftKings.

The DraftKings class lawsuit alleges that during the collection period the defendants made false and misleading statements and failed to disclose that: (i) SBTech had a history of improper operations; (ii) accordingly, the merger of DraftKings with SBTech has suspended DraftKings from trading in black market games; (iii) this increased DraftKings’ regulatory and criminal risks in relation to these transactions; (iv) as a result, DraftKings’ revenues came in part from illegal conduct and were therefore unsustainable; (v) accordingly, the benefits of the SPAC merger have been overestimated; and (vi) as a result, DraftKings’ public statements at all relevant times have been materially false and misleading.

On June 15, 2021, Hindenburg Research published a report on DraftKings claiming that DraftKings will be exposed to black market game trading through its merger with SBTech. Citing “conversations with several former employees, a review of” [U.S. Securities and Exchange Commission and] international filings and back-end infrastructure inspection on illegal international gambling websites, ”Hindenburg claimed that“ SBTech has a long and persistent black market track record, ”estimating that 50% of SBTech’s revenue comes from gambling markets are forbidden. As a result of this news, DraftKings’ share price fell more than 4%, which did harm to investors.

Robbins Geller Rudman & Dowd LLP has established a special SPAC Task Force to protect investors in blank check companies and seek redress for corporate misconduct. The SPAC Task Force consists of experienced litigation attorneys, investigators and forensic accountants and is dedicated to detecting and prosecuting fraud on behalf of aggrieved SPAC investors. The rise in blank check funding poses unique risks for investors. Robbins Geller Rudman & Dowd LLP’s SPAC Task Force represents the vanguard in ensuring integrity, honesty and equity in this rapidly evolving area of ​​investment.

LEAD ACTION: The Private Securities Litigation Reform Act of 1995 allows any investor who purchased DraftKings securities during the class action period to seek appointment as the lead plaintiff in the DraftKings class action. A lead plaintiff is usually the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all other group members in directing the DraftKings class action lawsuit. The lead plaintiff can choose a law firm of their choice to bring the DraftKings class action lawsuit. An investor’s ability to intervene in a possible future recovery of the DraftKings class action lawsuit does not depend on being the lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm serving investors in securities class actions. Robbins Geller’s attorneys have achieved many of the largest shareholder reclaims in history, including the largest securities class action of all time – Lit 7.2 billion. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first, for getting $ 1.6 billion back for investors last year, more than double the amount recovered from any other securities plaintiff firm. Please visit https://www.rgrdlaw.com/firm.html for more information.

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