Playtika Holdings Corp. (PLTK) Misled Investors Regarding the Sustainability of its Game Portfolio
A class action was filed on behalf of all persons and entities that purchased Playtika Holdings Corp. (NASDAQ: PLTK) securities pursuant to the Company’s January initial public offering (“IPO”) and between January 15, 2021 and November 2, 2021. The complaint alleges violations of the Securities Act of 1933 and Securities Exchange Act of 1934. Playtika develops mobile games in the U.S. and internationally.
According to the complaint, Playtika securities began trading on January 15, 2021. However, defendants negligently prepared the Offering Documents supporting the Playtika IPO. Specifically, they failed to disclose that: (i) the Company’s year-over-year total costs and costs related to sales & marketing and research & development were on track to rise significantly by the third quarter 2021; and (ii) the success of the Company’s game portfolio was less sustainable than the Company had represented.
On May 11, 2021, Playtika announced its financial results for the first quarter of 2021, missing consensus estimates for GAAP earnings per share by $0.04. Then, on November 13, 2021, Playtika announced its financial results for the third quarter of 2021. The Company missed consensus estimates by $26.07 million for revenue and consensus estimates by $0.05 for GAAP earnings per share. On an earnings call the same day, defendants admitted that two of the games in the Company’s portfolio yielded disappointing revenues in the quarter. On this news, Playtika’s stock fell 23.3%, to close at $22.72 per share on November 3, 2021.
If you purchased Playtika Holdings Corp. (PLTK) securities pursuant to the Company’s IPO or between January 15, 2021 and November 2, 2021, you have until January 24, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.