PlayAGS, Inc. Class Action Lawsuit
- Company Name
- PlayAGS, Inc.
- Stock Symbol
- Class Period
- August 2, 2018 to August 7, 2019
- 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%.
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