| COMPANY |
PLAYSTUDIOS, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
22-cv-02164 |
| JUDGE |
The Honorable Vince Girdhari Chhabria |
| CLASS PERIOD |
June 22, 2021 - March 1, 2022 |
| SECURITY TYPE |
Securities |
PLAYSTUDIOS investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than June 6, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who: (1) purchased or acquired Playstudios, Inc. (“Playstudios”) securities (NASDAQ: MYPS; MYPSW) between June 22, 2021 and March 1, 2022, both dates 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. (“Acies”) (NASDAQ: ACAC; ACACW) 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 (3) purchased or otherwise acquired Playstudios common stock pursuant or traceable to the Acies’ Registration Statement and Proxy Statement issued in connection with the June 2021 merger.
Case Background:
On February 1, 2021, Acies, a special purpose acquisition company, announced that it had reached a merger agreement with “Old Playstudios,” a privately-held gaming company (the “Merger”). PLAYSTUDIOS’ flagship game was Kingdom Boss. PLAYSTUDIOS told investors that “Kingdom Boss, which began development in 2020, will launch as expected in the second half of 2021.”
On June 17, 2021, Acies held a General Meeting where Acies shareholders were asked to approve
the Merger. The Merger closed on June 21, 2021, and on June 22, 2021, PLAYSTUDIOS stock and warrants began publicly trading on NASDAQ.
The truth began to be revealed on August 11, 2021, when PLAYSTUDIOS released its financial results for the second quarter of 2021 wherein PLAYSTUDIOS revealed for the first time that the Kingdom Boss launch was being delayed until later in the year and that investors should expect decreased revenues and profits during the year as a result. These quarterly financial results were finalized on June 30, 2021, just nine days after the Merger closed. Thus, defendants knew or recklessly disregarded prior to the merger close (June 21, 2021) and prior to the merger vote by the Acies shareholders (June 17, 2021), that Kingdom Boss would not be ready to launch within just a matter of weeks. Following this news, PLAYSTUDIOS stock price fell $.66 to close at $5.09 per share on August 12, 2021, a decline of 13%.
Then, on February 24, 2022, during an earnings call for the fourth quarter ended December 31, 2021, PLAYSTUDIOS’ CEO, much to investors’ surprise, disclosed that Kingdom Boss would not be launched at all. Following this news, PLAYSTUDIOS stock price fell $.24 to close at $4.86 per share on February 25, 2022, a decline of 5%. Two days later, 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 not only delayed, but indefinitely “suspended.”
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.