SAN DIEGO, June 15, 2021 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP is investigating potential violations of the federal securities laws by DraftKings Inc. ("DraftKings" or the "Company") (NASDAQ: DKNG).
Last year DraftKings went public in a 3-way merger between DraftKings, its SPAC sponsor, and a Bulgaria-based gaming technology company called SBTech.
On June 15, 2021, Hindenburg Research issued a report concerning DraftKings entitled "DraftKings: A $21 Billion SPAC Betting It Can Hide Its Black Market Operations." Hindenburg Research detailed a series of disturbing red flags about DraftKings. Specifically, the report stated, "Unbeknownst to investors, DraftKings' merger with SBTech also brings exposure to extensive dealings in black-market gaming, money laundering and organized crime. Based on conversations with multiple former employees, a review of SEC & international filings, and inspection of back-end infrastructure at illicit international gaming websites, we show that SBTech has a long and ongoing record of operating in black markets."
Following this news, the price of DraftKings common shares fell 8% in early morning trading on June 15, 2021.
If you have information that could assist in this investigation, including past employees and others, or if you are a DraftKings shareholder and are interested in learning more about the investigation, please contact Jim Baker ([email protected]) by email or phone at 619-814-4471. If emailing, please include a phone number.
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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
SOURCE Johnson Fistel, LLP