Levi Korsinsky Notifies DraftKings of a Class Action Lawsuit
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Levi Korsinsky LLP Notifies DraftKings, Inc. (DKNG) of a Class Action Lawsuit
Levi Korsinsky, LLP notifies DraftKings, Inc. (DKNG) of a class action lawsuit on behalf of investors that purchased DraftKings Class A common stock between November 16, 2021 and July 22, 2022.
On July 22, 2022, DraftKings revealed disappointing second quarter 2022 financial results. The company reported a net loss of $304.6 million, significantly wider than the net loss of $226.1 million reported in the prior year's second quarter.
This news caused DraftKings' stock price to fall 15% on July 22, 2022, to close at $14.87 per share, on unusually heavy trading volume.
About DraftKings, Inc.
DraftKings, Inc. a digital sports entertainment and gaming company that provides daily fantasy sports, sports betting, and iGaming products.
The company was founded in 2012 and is headquartered in Boston, Massachusetts.
DraftKings has over 1.5 million monthly active users and operates in 17 states.
The Lawsuit
The lawsuit alleges that DraftKings made materially false and misleading statements to the public about the company's business, operations, and financial prospects.
Specifically, the lawsuit alleges that DraftKings: - Overstated the number of monthly active users - Misrepresented the profitability of the company's sports betting business - Failed to disclose the risks associated with the company's rapid expansion
The Plaintiffs
The lawsuit has been filed on behalf of all investors that purchased DraftKings Class A common stock between November 16, 2021 and July 22, 2022.
Lead plaintiff is represented by Levi Korsinsky, LLP, a national securities law firm with offices in New York, California, Illinois, and Washington D.C.
Contact Information
Levi Korsinsky, LLP Marianne Bonner, Esq. 55 Broadway, 10th Floor New York, NY 10006 (212) 363-7500
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