PlayAGS, Inc. Class Action Lawsuit
- Company Name
- PlayAGS, Inc.
- Stock Symbol
- Class Period
- August 2, 2018 to August 7, 2019
- Motion Deadline
- August 24, 2020
- 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%.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased PlayAGS securities during the Class Period to seek appointment as lead plaintiff in the PlayAGS class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the PlayAGS class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the PlayAGS class action lawsuit. An investor’s ability to share in any potential future recovery of the PlayAGS class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the PlayAGS class action lawsuit or have questions concerning your rights regarding the PlayAGS class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the PlayAGS securities class action lawsuit must be filed with the court no later than August 24, 2020.
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.