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PlayAGS, Inc. Class Action Lawsuit

Case Summary

Company Name
PlayAGS, Inc.
Stock Symbol
AGS
Class Period
August 2, 2018 to August 7, 2019
Court
District of Nevada

The PlayAGS, Inc. class action lawsuit charges PlayAGS and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of PlayAGS securities between August 2, 2018 and August 7, 2019, inclusive (the “Class Period”).  The PlayAGS class action lawsuit was commenced on June 25, 2020 in the District of Nevada and is captioned Chowdhury v. PlayAGS, Inc., No. 20-cv-01209.

PlayAGS is a designer and supplier of electronic gaming machines.

The PlayAGS class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose: (i) that PlayAGS was experiencing challenges in its business in Oklahoma; (ii) that, as a result, PlayAGS’s recurring revenue would be negatively impacted; (iii) that PlayAGS was experiencing challenges in its Interactive business segment, including delays in securing regulatory approvals and relevant licenses; (iv) that, as a result of the foregoing, PlayAGS was reasonably likely to record a goodwill impairment; and (v) that, as a result of the foregoing, defendants’ positive statements about PlayAGS’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

On August 7, 2019, PlayAGS reported a net loss of $7.6 million for the second quarter of 2019, which included a $3.5 million impairment to goodwill and $1.3 million impairment to intangible assets of PlayAGS’s iGaming reporting unit, due to extended regulatory timelines which delayed revenues.  On this news, the price of PlayAGS shares fell nearly 52%.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: August 2, 2018 - August 7, 2019
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