NEW YORK, Nov. 24, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Playtika Holding Corp. (“Playtika” or the “Company”) (NASDAQ: PLTK) in the United States District Court for the Eastern District of New York on behalf of a class consisting of all persons and entities that purchased or otherwise acquired: (i) the Company stock pursuant and/or traceable to the Company’s initial public offering conducted on or about January 15, 2021 (the “IPO” or “Offering”); or (ii) the Company’s stock between January 15, 2021 and November 2, 2021 (the “Class Period”).
The Company develops mobile games in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The Company distributes its games to the end customer through various web and mobile platforms, such as Apple, Facebook, Google, and other web and mobile platforms and its own proprietary platforms.
On December 18, 2020, the Company filed a registration statement on Form S-1 with the Securities and Exchange Commission (“SEC”) in connection with the IPO, which, after an amendment, was declared effective by the SEC on January 14, 2021 (the “Registration Statement”). On January 15, 2021, pursuant to the Registration Statement, the Company’s securities began trading on the NASDAQ Global Select Market under the symbol “PLTK.” That same day, the Company filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (collectively, the “Offering Documents”).
The Complaint alleges that the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s year-over-year total costs and costs related to sales & marketing and research & development were on track to rise significantly by the third quarter of 2021; (ii) the success of the Company’s game portfolio was less sustainable than the Company had represented; (iii) the foregoing issues were likely to negatively impact the Company’s revenue and earnings; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On May 11, 2021, the Company announced its financial results for the first quarter of 2021. While the Company’s revenue beat expectations by $57.97 million, its GAAP earnings per share of $0.09 missed consensus estimates by $0.04. On this news, the Company’s stock price fell $.93 per share, or 3.47%, to close at $25.89 per share on May 11, 2021.
On November 3, 2021, the Company announced its financial results for the third quarter of 2021. Among other items, the Company reported revenue of $635.9 million, missing consensus estimates by $26.07 million, and GAAP EPS of $0.20, missing consensus estimates by $0.05. That same day, on an earnings call with investors and analysts discussing the Company’s Q3 2021 results, Defendant Robert Antokol, the Company’s Chief Executive Officer, and Defendant Craig Abrahams, the Company’s Chief Financial Officer, revealed that two of the games in the Company’s portfolio yielded disappointing revenues for the quarter.
On this news, the Company’s stock price fell $6.80 per share, or 23.3%, to close at $22.72 on November 3, 2021.
Investors who purchased or otherwise acquired shares of Playtika during the Class Period should contact the Firm prior to the January 24, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
