The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of DraftKings Inc. f/k/a Diamond Eagle Acquisition Corp. (NASDAQ: DKNG) who purchased shares between December 23, 2019 and June 15, 2021. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the DraftKings Inc. lawsuit alleges that (i) SBTech Global Limited (“SBTech”), a company acquired by DraftKings, had a history of unlawful operations; (ii) accordingly, DraftKings’ merger with SBTech exposed the Company to dealings in black-market gaming; (iii) the foregoing increased the Company’s regulatory and criminal risks with respect to these transactions; (iv) as a result of all the foregoing, the Company’s 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’s public statements were materially false and misleading at all relevant times.
Shareholders have until August 31, 2021 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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