DraftKings Says Class Action Over SBTech Acquisition Meritless

A consolidated securities class action alleging DraftKings failed to disclose a company it acquired had a history of illegal operations that exposed it to liability should be dismissed, because the claims are based “exclusively” on an unsubstantiated internet posting, the company told the Southern District of New York.

The complaint, which concerns the sports betting company’s acquisition of SB Tech Global Ltd., “does nothing more than repackage the contents of an internet posting from a short-seller, Hindenburg Research, that the author concedes reflects biased opinions based on publicly-available information,” DraftKings told the U.S. District Court for the Southern District of ...