PLAYSTUDIOS, INC. (NASDAQ: MYPS) SHAREHOLDER CLASS ACTION ALERT: Bernstein Liebhard LLP Announces that a Securities Class Action Lawsuit Has Been Filed Against PLAYSTUDIOS, Inc. (NASDAQ: MYPS)
Did you lose money on investments in PLAYSTUDIOS? If so, please visit PLAYSTUDIOS, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected] to discuss your rights.
NEW YORK, April 7, 2022 /PRNewswire/ -- Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of PLAYSTUDIOS, Inc. ("Playstudios" or the "Company") (NASDAQ: MYPS) between June 22, 2021 and March 4, 2022, both dates inclusive, including, but not limited to, those who purchased or acquired Playstudios securities pursuant to the private investment in public equity offering ("PIPE" offering); (2) held common stock of Acies Acquisition Corp. ("Acies") as of May 25, 2021, and were eligible to vote at Acies' June 16, 2021 special meeting and exchanged their shares of Acies stock for shares of Playstudios stock pursuant to the merger of Acies and Old Playstudios, a privately-held gaming company (the "Merger"); and/or (3) purchased or otherwise acquired Playstudios common stock pursuant to or traceable to the Acies' Registration Statement and Proxy Statement issued in connection with the Merger. The lawsuit was filed in the United States District Court for the Northern District of California and alleges violations of Sections 10(b), 14, and 20 of the Securities Exchange Act of 1934 and Section 11 of the Securities Act of 1933.
On February 1, 2021, Acies announced that it had reached a merger agreement with Old Playstudios (the "Merger Agreement"). Playstudios represented that the transaction implied an enterprise valuation for Playstudios of $1.1 billion and that the consideration to Old Playstudios shareholders for the Merger would comprise at least 89.1 million shares of Acies common stock, worth $10 per share, up to $150 million in cash, and a $250 million PIPE investment of Acies common stock.
Defendants allegedly made misleading statements and omissions regarding the true state of Playstudios' development of its flagship game Kingdom Boss, and about its financial projections and future prospects, including in the Registration Statement and Proxy Statement. In the Registration Statement and Proxy Statement, Playstudios represented that "Kingdom Boss, which began development in 2020, will launch as expected in the second half of 2021". However, Defendants knew that Kingdom Boss had encountered difficulties in its design and implementation that would cause the launch to be substantially delayed. In fact, only a few months later, it was revealed that Kingdom Boss would never be launched. Consequently, the 2021 and 2022 projected revenues and profits were inflated and unreliable.
On August 11, 2021, Playstudios released its financial results for the second quarter of 2021, ended on June 30, 2021. The financial results reported for the quarter were finalized on June 30, 2021, just nine days after the Merger closed. Playstudios revealed for the first time on August 11, 2021 that the Kingdom Boss launch was delayed until later in the year and investors should expect decreased revenues and profits during the year as a result.
On February 26, 2022, Paystudios CEO Andrew Pascal attributed the failure to meet the revenue and earnings projections to the failure to launch Kingdom Boss, and revealed that Kingdom Boss was not only delayed, but indefinitely "suspended".
On February 28, 2022, a securities analyst published an article entitled "Getting Played by Playstudios". In that article, he wrote: "I feel lied to. Or they were disastrously wrong about the prospects for their own company. Either way, it's not good."
On March 3, 2022, Playstudios filed its 10-K, which confirmed the extent of costs attributable to Kingdom Boss' failed launch.
If you wish to serve as lead plaintiff, you must move the Court no later than June 6, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or held MYPS securities, and/or would like to discuss your legal rights and options please visit PLAYSTUDIOS, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected].
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
[email protected]
SOURCE Bernstein Liebhard LLP
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