Playtika Holding Corp.

Case Details

Class Period: January 12, 2021 - November 2, 2021
Date Filed: November 23, 2021
Case Number: 1:21cv06571
Jurisdiction: New York Eastern District Court
icon-casetype Case Type: Securities Case
Days Left to
Seek Plaintiff:

Case Summary

Playtika 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, Playtika 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, Playtikas securities began trading on the NASDAQ Global Select Market under the symbol PLTK. That same day, Playtika 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 throughout the Offering Documents issued in connection with the Companys IPO were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Additionally, throughout the Class Period, Defendants made materially false and misleading statements regarding the Companys business, operational and compliance policies. Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Companys 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 Companys game portfolio was less sustainable than the Company had represented; (iii) the foregoing issues were likely to negatively impact the Companys revenue and earnings; and (iv) as a result, the Companys public statements were materially false and misleading at all relevant times. On May 11, 2021, Playtika announced its financial results for the first quarter of 2021. While the Companys revenue beat expectations by $57.97 million, its GAAP earnings per share of $0.09 missed consensus estimates by $0.04. On this news, Playtikas stock price fell $.93 per share, or 3.47%, to close at $25.89 per share on May 11, 2021. Then, on November 3, 2021, Playtika announced its financial results for the third quarter of 2021. Among other items, Playtika 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 Companys Q3 2021 results, Defendant Robert Antokol, Playtikas Chief Executive Officer, and Defendant Craig Abrahams, Playtikas Chief Financial Officer, revealed that two of the games in Playtikas portfolio yielded disappointing revenues for the quarter. On this news, Playtikas stock price fell $6.80 per share, or 23.3%, to close at $22.72 on November 3, 2021.