Shareholder rights law firm Robbins LLP announces that a purchaser of PlayAGS, Inc. (NASDAQ: AGS) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between August 2, 2018 and August 7, 2019. PlayAGS designs and supplies gaming products and services for the gaming industry in the United States and internationally.
If you suffered a loss as a result of PlayAGS' misconduct, click here.
PlayAGS, Inc. (AGS) Accused of Misleading Shareholders
According to the complaint, on March 5, 2019, PlayAGS announced in its 2019 outlook an expected adjusted EBITDA of $160-$164 million, representing growth of approximately 17%-20% compared to 2018. On May 8, 2019, PlayAGS continued to tout its positive financials, announcing an increase of 13% in total revenue for first quarter 2019 due to "continued growth in [its] [electronic gaming machine] segment, primarily [selling] units in… Michigan, Saskatchewan, Pennsylvania, and Massachusetts." However, PlayAGS failed to disclose that the Company had been experiencing challenges in Oklahoma that would negatively impact its revenue. This impact was revealed on August 7, 2019, when PlayAGS reported a net loss of $7.6 million for second quarter 2019, including a $3.5 million impairment to goodwill and another $1.3 million impairment in iGaming reporting unit due to extended regulatory timelines that delayed revenues. PlayAGS also cut its 2019 expected adjusted EBITDA to $145-$150 million, now representing growth of only 6%-10% from 2018. On this news, PlayAGS' stock declined $8.99 per share, or 52%, closing at $8.31 per share on August 8, 2019.
If you purchased PlayAGS, Inc. (AGS) securities between August 2, 2018 and August 7, 2019, you have until August 4, 2020, to ask the court to be appointed lead plaintiff for the class.
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