SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of DraftKings Inc. - DKNG

NEW YORK, March 28, 2024

The investigation concerns whether DraftKings and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

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On March 27, 2024, Senator Richard Blumenthal sent a letter to DraftKings asking the company to stop targeting gambling addicts. In particular, Senator Blumenthal wants the online sports betting operator to change how it targets VIPs and heavy bettors. Separately, New York Representative Paul Tonko said he is working on legislation that would impose federal oversight of online sports betting in any state that has legalized the business, stating "[t]he bonuses and credits, the promotions and pitches, the VIP hosts. It has to be seen as a whole, and there may be aspects of it that should be prohibited or much more rigorously restricted." 

On this news, DraftKings' stock price fell $3.33 per share, or 6.84%, to close at $45.35 per share on March 27, 2024.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, 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, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz 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 billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.