Updated: February 15, 2021
Status: Ongoing Case
On October 28, 2020, Labaton Sucharow LLP was appointed lead counsel in a securities class action against PlayAGS, Inc. (“PlayAGS”) and other defendants. Based in Las Vegas, Nevada, PlayAGS is a designer and supplier of electronic gaming machines (“EGMs”). The Company’s EGM Segment is its most important business segment, accounting for approximately 95 percent of the Company’s revenue in 2019. Additionally, Oklahoma is PlayAGS’s most important market, accounting for approximately 24 percent of the Company’s revenue in 2019.
Lead Plaintiff filed an amended complaint on January 11, 2021, which alleges that PlayAGS made numerous false and misleading statements regarding the company’s financial prospects during the class period and in the offering materials for PlayAGS’s 2019 secondary offerings. Specficially, the amended complaint alleges that the offering materials, as well as class period statements made by the Company and its executives, repeatedly touted PlayAGS’ purported competitive strengths and key growth strategies. These growth strategies included the optimization of the Company’s older, underperforming EGMs with newer, more profitable EGMs, as well as the placement of new EGMs within its existing markets.
The case is In re PlayAGS, Inc. Securities Litigation, No. 20-cv-01209 (D. Nev.). Labaton Sucharow represents lead plaintiff Oklahoma Police Pension and Retirement System. The defendants are PlayAGS, certain of its officers and directors, and the underwriters for its secondary offerings.