Former Louisiana Attorney General initiates investigation into Playstudios
Gaming company released underwhelming financial results from 2022 and was charged with failing to disclose information.
Playstudios has found itself under investigation on whether its officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws. Playstudios is a gaming company that develops and markets casino games for mobile devices and personal computers. Former Attorney General of Louisiana Charles Foti Jr. announced that he and his law firm, Kahn Swick & Foti (KSF), have begun an investigation after Playstudios released disappointing financial results and a lawsuit was placed upon the company and a certain number of executives.
In Aug. 2021, Playstudios delayed the launch of its flagship game, Kingdom Boss, which became a factor in decreased revenues and profits during the year. Then, in Feb. 2022, Playstudios disclosed disappointing financial results for Q4 and 2021 as a whole. It also announced the Kingdom Boss game had been abandoned completely due to “metrics” and vague “performance” issues, resulting in an $8m write off associated with the game. On May 5, 2022, Playstudios released Q1 financial results including a total revenue of $70.5m compared to $74.1 million in Q1 of 2021.
A securities class action lawsuit was also handed to Playstudios and some executives, being charged with failing to disclose material information during the Class Period which violates federal security laws. Playstudios filed a motion to have the case dismissed but were denied by the court presiding over the case.
KSF does work for many clients including public institutional investors, hedge funds, money managers and retail investors. Its mission is seeking recoveries for investment losses emanating from corporate fraud or deception by publicly traded companies.
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