NEW YORK, July 31, 2020 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against PlayAGS Inc. (“PlayAGS” or the “Company”) (NYSE: AGS) and certain of its officers. The class action, filed in United States District Court for the District of Nevada, and indexed under 20-cv-01428, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired PlayAGS securities between August 2, 2018, and August 7, 2019, inclusive (the “Class Period”), seeking to pursue claims against the Defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased PlayAGS securities during the class period, you have until August 24, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
PlayAGS is a designer and supplier of electronic gaming machines. It operates with three business segments: (i) electronic gaming machines (“EGM”), which comprises 95% of the Company’s revenue and provides 380 game titles on EGM cabinets; (ii) table products, including live felt table games, side bet offerings, progressives, signage, and other ancillary table game equipment; and (iii) interactive, which offers social casino games including online versions of the Company’s game titles.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements, and failed to disclose material adverse facts about the Company’s business, operational, and compliance policies. Specifically, Defendants failed to disclose to investors that: (i) PlayAGS was experiencing challenges in its business in Oklahoma; (ii) as a result, the Company’s recurring revenue would be negatively impacted; (iii) PlayAGS was experiencing challenges in its Interactive business segment, including delays in securing regulatory approvals and relevant licenses; (iv) as a result of the foregoing, PlayAGS was reasonably likely to record a goodwill impairment; and (v) 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 the second quarter 2019, which included a $3.5 million impairment to goodwill and $1.3 million impairment to intangible assets of the Company’s iGaming reporting unit, because of extended regulatory timelines which delayed revenues.
On this news, the Company’s share price fell $8.99 per share, or nearly 52%, to close at $8.31 per share on August 8, 2019, on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP