Case docket
In re DraftKings Inc. Securities Litigation — U.S. District Court, S.D.N.Y.
In re DraftKings Inc. Securities Litigation — 12 court filings in the archive from U.S. District Court for the Southern District of New York, filed between July 2, 2021 and January 10, 2023. Among them: 3 complaints, 2 opinions and 1 declaration.
Case facts
| Court | U.S. District Court for the Southern District of New York |
|---|---|
| Filings | 12 public filings |
| Filed | 2021-07-02 – 2023-01-10 |
| Document types | complaints (3), opinions (2), declaration (1), memorandum or brief (1), exhibit (1), judgment (1) |
| Original PDFs | 12 of 12 |
Case summary
In re DraftKings Inc. Securities Litigation, No. 1:21-cv-05739 in the U.S. District Court for the Southern District of New York, is a putative securities class action on behalf of purchasers of DraftKings, Inc. securities between December 23, 2019 and June 15, 2021. The second amended complaint alleges that SBTech (Global) Limited, a company DraftKings acquired in going public, had secretly operated in jurisdictions where gambling was illegal, and that DraftKings made materially false and misleading statements about and failed to disclose that conduct, so that its shares traded at inflated prices until a Hindenburg Research report published June 15, 2021. On January 10, 2023 the court granted the motion to dismiss in full and dismissed the complaint with prejudice; judgment was entered the same day.
Case at a glance
| Parties | Lead plaintiff and the putative class of purchasers of DraftKings securities; defendants DraftKings, Inc., formerly known as Diamond Eagle Acquisition Corp., and affiliated individual defendants |
|---|---|
| Court and docket | U.S. District Court for the Southern District of New York, No. 1:21-cv-05739-PAE, before Judge Paul A. Engelmayer |
| Program | Not named in the filings on this page. The claims concern disclosures about an acquired gambling technology business, not a pandemic relief program |
| Claims | Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and Rule 10b-5, as to all defendants; Section 20(a), 15 U.S.C. § 78t(a), as to the individual defendants |
| Disposition or status | Dismissed with prejudice. The judgment of January 10, 2023 records that the motion to dismiss was granted under Federal Rules of Civil Procedure 9(b) and 12(b)(6) and the PSLRA, and that the case is closed |
| Status checked | 2026-09-23 · against DOJ press releases through 2026-09-22; court docket not yet read |
What does the complaint allege?
That SBTech had secretly operated in "black-market" jurisdictions, exposing DraftKings to regulatory and criminal risks and making some revenue the fruit of illegal conduct, and that DraftKings made materially false and misleading statements about and failed to disclose those violations of foreign law and their potential consequences. These are the complaint's allegations.
What did the court decide?
It granted the motion to dismiss in full and dismissed the second amended complaint with prejudice, on a motion brought for failure to state a claim under Rules 12(b)(6) and 9(b) and the Private Securities Litigation Reform Act, 15 U.S.C. § 78u-4(b).
What else is on the page?
The original class action complaint of July 2, 2021, a lead plaintiff motion and the November 12, 2021 opinion and order appointing lead plaintiff, the amended complaint of January 11, 2022 with the Hindenburg Research report as Exhibit A, the defendants' motion to dismiss brief, the second amended complaint of April 5, 2022, and the opinion and judgment of January 10, 2023.
Summary written from the documents on this page; every sentence is sourced.
Filings
12 public filings from this case, in filing-date order.
- Class Action Complaint — In re DraftKings Inc. Securities Litigation (S.D.N.Y.)Complaint · PDF
- Declaration of Velvel Freedman in Support of Lead Plaintiff Motion — In re DraftKings Securities Litigation (S.D.N.Y.)Declaration · PDF
- Memorandum of Law — Motion for Lead Plaintiff (Kaintz)Memorandum or brief · PDF
- Opinion & Order — Lead Plaintiff and ConsolidationOpinion
- Amended Class Action Complaint — In re DraftKings Inc. Securities Litigation (S.D.N.Y.)Complaint · PDF
- Exhibit A — Hindenburg Research Report on DraftKingsExhibit · PDF
- Defendants' Memorandum of Law — Motion to Dismiss Amended Complaint — In re DraftKings Inc. Securities Litigation (S.D.N.Y.)PDF
- Defendants’ Motion to Dismiss Amended Complaint — In re DraftKings Securities LitigationPDF
- Second Amended Class Action Complaint — In re DraftKings Inc. Securities Litigation (S.D.N.Y.)Complaint · PDF
- Defendants’ Motion to Dismiss Second Amended Complaint — In re DraftKings Securities LitigationPDF
- Judgment — In re DraftKings Inc. Securities Litigation (S.D.N.Y.)Judgment · PDF
- Opinion & Order — Motion to Dismiss — In re DraftKings Inc. Securities Litigation (S.D.N.Y.)Opinion · PDF
Court, dates and docket numbers are as recorded on the filings.