PLAYSTUDIOS, INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired PLAYSTUDIOS, Inc. (“Playstudios” or the “Company”) (NASDAQ: MYPS) securities between June 22, 2021 and March 4, 2022, both dates inclusive, including, but not limited to, those who purchased or acquired Playstudios securities pursuant to the offering of the private investment in public equity; (2) held common stock of Acies Acquisition Corp. (“Acies”) as of May 25, 2021, eligible to vote at Acies’ June 16, 2021 special meeting; and/or (3) purchased or otherwise acquired Playstudios common stock pursuant to or traceable to the Acies’ Registration Statement and Proxy Statement issued in connection with the June 2021 Merger. The lawsuit seeks to recover Playstudios shareholders’ investment losses.
If you purchased securities in PLAYSTUDIOS, Inc. between June 22, 2021 and March 4, 2022, both dates inclusive, including, but not limited to, those who purchased or acquired Playstudios securities pursuant to the offering of the private investment in public equity; (2) held common stock of Acies Acquisition Corp. (“Acies”) as of May 25, 2021, eligible to vote at Acies’ June 16, 2021 special meeting; and/or (3) purchased or otherwise acquired Playstudios common stock pursuant to or traceable to the Acies’ Registration Statement and Proxy Statement issued in connection with the June 2021 Merger, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
On February 1, 2021, Acies announced that it had reached a merger agreement with Playstudios (“Old Playstudios”), a privately-held gaming company (the “Merger” or “Merger Agreement”). 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 Acies common stock, worth $10 per share, up to $150 million in cash, and a $250 million investment PIPE of common stock of Acies.
Defendants made misleading statements and omissions regarding the true state of Playstudios’ development of 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 Playstudios’ highly anticipated flagship game, Kingdom Boss. 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”. However, at the same time that the projections of revenue and profits were being publicly made in SEC filings, defendants knew that Kingdom Boss had encountered difficulties in its design and implementation that would cause the launch to be substantially delayed. In fact, these difficulties resulted only a few months later in the public admission that Kingdom Boss would never be launched. Consequently, the 2021 and 2022 projected revenues and profits were inflated and unreliable. During the Class Period, the price of Playstudios stock was artificially inflated because it was trading at prices affected by those financial projections being accurate and the representation that Kingdom Boss would be launched soon.
The truth began to come to light after Playstudios released its financial results for the second quarter of 2021, ended on June 30, 2021, on August 11, 2021. The financial results reported for the quarter were finalized on June 30, 2021, just nine days after the Merger closed. At that time, 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.
Then, on February 26, 2022, defendant Pascal 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”.
On February 28, 2022, a securities analyst published an article entitled “Getting Played by Playstudios” where he wrote: “I feel lied to. Or they were disastrously wrong about the prospects for their own company. Either way, it’s not good.” And finally, on March 3, 2022, Playstudios filed its 10-K, which confirmed the extent of costs attributable to Kingdom Boss’ failed launch.
If you wish to serve as lead plaintiff, you must move the Court no later than June 6, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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