NEW YORK - (NewMediaWire) - August 19, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in PlayAGS, Inc. ("PlayAGS" or the "Company") (NYSE:AGS) of the August 24, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in PlayAGS stock or options between August 2, 2018 and August 7, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/AGS. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased PlayAGS securities between August 2, 2018 and August 7, 2019 (the "Class Period"). The case, Chowdhury v. PlayAGS, Inc. et al., No. 20-cv-01209 was filed on June 25, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose to investors: (1) that PlayAGS was experiencing challenges in its business in Oklahoma; (2) that, as a result, the Company’s recurring revenue would be negatively impacted; (3) that PlayAGS was experiencing challenges in its Interactive business segment, including delays in securing regulatory approvals and relevant licenses; (4) that, as a result of the foregoing, PlayAGS was reasonably likely to record a goodwill impairment; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On August 7, 2019, PlayAGS reported a net loss of $7.6 million for second quarter 2019 which included a $3.5 million impairment to goodwill and a $1.3 million impairment to intangible assets of the Company’s iGaming reporting unit, due to extended regulatory timelines which delayed revenues.
On this news, PlayAGS's share price fell from $17.30 per share on August 7, 2019 to a closing price of $8.31 on August 8, 2019: a $8.99 or a 51.96% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding PlayAGS's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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