Playstudios, Inc. Class Action Lawsuit - MYPS
- Company Name
- Playstudios, Inc.
- Stock Symbol
- MYPS; MYPSW
- Class Period
- June 22, 2021 to March 1, 2022
- Motion Deadline
- June 6, 2022
- Northern District of California
The Playstudios class action lawsuit seeks to represent investors who: (1) purchased Playstudios, Inc. (NASDAQ: MYPS; MYPSW) securities between June 22, 2021 and March 1, 2022, inclusive (the “Class Period”), including, but not limited to, those who purchased or acquired Playstudios securities pursuant to the offering of the private investment in public equity (“PIPE” offering); (2) held common stock of Acies Acquisition Corp. as of May 25, 2021 and were eligible to vote at Acies’ June 16, 2021 special meeting who exchanged their shares of Acies stock for shares of Playstudios stock pursuant to the merger of Acies and Old Playstudios (defined below); and (3) purchased or otherwise acquired Playstudios common stock pursuant to or traceable to Acies’ Registration Statement and Proxy Statement issued in connection with the June 2021 merger. Commenced on April 5, 2022, the Playstudios class action lawsuit – captioned Felipe v. Playstudios, Inc., No. 22-cv-02164 (N.D. Cal.) – charges Playstudios, its CEO, and others with violations of the Securities Act of 1933 and/or Securities Exchange Act of 1934.
If you suffered significant losses and wish to serve as lead plaintiff of the Playstudios class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Playstudios class action lawsuit must be filed with the court no later than June 6, 2022.
CASE ALLEGATIONS: Acies is a “blank check” special purpose acquisition company (“SPAC”) formed in October 2020. On February 1, 2021, Acies announced that it had reached a merger agreement with Playstudios, a privately-held gaming company (“Old Playstudios”). In the press release announcing the merger, Playstudios announced 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 investment PIPE of common stock of Acies.
The Playstudios class action lawsuit alleges that Playstudios 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 in the Registration Statement and Proxy Statement and subsequent statements. The projections were expressly premised on a successful and timely launch of Kingdom Boss. For example, in the Registration Statement and Proxy Statement, Playstudios told investors that “Kingdom Boss, which began development in 2020, will launch as expected in the second half of 2021.” The Playstudios class action lawsuit further alleges that, at the same time the projections of revenue and profits were being publicly made, Playstudios knew that Kingdom Boss had encountered difficulties in its design and implementation that would cause the launch to be substantially delayed.
On August 11, 2021, Playstudios revealed for the first time that the Kingdom Boss launch was being delayed until later in the year and investors should expect decreased revenues and profits during the year as a result. On this news, Playstudios’ stock price declined by approximately 13%.
Then, on February 24, 2022, Playstudios’ CEO, defendant Andrew Pascal, disclosed that Kingdom Boss would not be launched at all: “As I’ve shared, [Kingdom Boss] has struggled to achieve all the criteria that were established for a full-scale launch even after making the game available in North America late in the fourth quarter. And while Boss Fight [the developer] has consistently assured us that based on their experience, the product is on a constructive path, currently, we’ve elected to suspend development and reevaluate our options.” On this news, Playstudios’ stock price fell by approximately 5%.
Since the merger, and as a result of the disclosures of material adverse facts omitted from the Registration Statement, Playstudios’ stock price has traded approximately 60% below the $10 per share price upon the closing of the merger.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who: (1) purchased Playstudios securities during the Class Period; (2) held common stock of Acies as of May 25, 2021 and was eligible to vote at Acies’ June 16, 2021 special meeting who exchanged its shares of Acies stock for shares of Playstudios stock pursuant to the merger; and (3) purchased or otherwise acquired Playstudios common stock pursuant to or traceable to Acies’ Registration Statement and Proxy Statement issued in connection with the June 2021 merger to seek appointment as lead plaintiff in the Playstudios class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.