Playstudios, Inc. (MYPS) Misled Investors in its Offering Documents in Support of its SPAC Merger
A shareholder filed a class action on behalf of three classes of persons and entities:
- those that purchased or otherwise acquired Playstudios, Inc. (NASDAQ: MYPS) securities between June 22, 2021 and March 1, 2022, including Playstudios securities acquired pursuant to the offering of the public investment in public equity offering;
- 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; or
- purchased or otherwise acquired Playstudios common stock pursuant to the Acies’ Offering documents in connection with the June 2021 merger.
According to the complaint, throughout the class period, including at the time of the merger between Acies Acquisition Corp. and Playstudios, the Company repeatedly represented to investors that Kingdom Boss – Playstudios’ highly anticipated flagship game – was “on track” for release in 2021 and that Playstudios would enjoy substantial revenue and profits as a result of the game’s launch and subsequent sales.
On February 24, 2022, Playstudios filed its annual report for 2021 with the SEC and issued a press release summarizing financial results for the fourth quarter and year ended December 31, 2021. On this news, Playstudios stock price fell 5%, to close at $4.86 per share on February 25, 2022. Then, on February 26, 2022, Playstudios CEO attributed the failure to meet the projections made for revenue and earnings to the failure to launch Kingdom Boss and revealed that Kingdom Boss was indefinitely “suspended.”
Next Steps: If you acquired shares of Playstudios, Inc. (MYPS) pursuant to one of the classes listed above, contact us to discuss the opportunity to act as lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.