An investor, who purchased shares of SciPlay Corporation (NASDAQ: SCPL), filed a lawsuit over alleged violations of Securities Laws by SciPlay Corporation (NASDAQ: SCPL in connection with certain allegedly false and misleading statements made in connection with the company’s initial public offering (“IPO”).
Las Vegas, NV based SciPlay Corporation develops and publishes digital games on mobile and Web platforms. On May 3, 2019, SciPlay Corporation conducted its initial public offering, selling 22 million shares for $16 per share and raising $352 million. Since then shares of SciPlay Corporation (NASDAQ: SCPL) declined from $16.03 per share in late May 2019 to as low as $9.23 per share on October 16, 2019.
According to the complaint the plaintiff alleges on behalf of purchasers of SciPlay Corporation (NASDAQ: SCPL) common shares that the defendants issued materially misleading Registration Statement and Prospectus (collectively the “Registration Statement”) in connection with the IPO. More specifically, the plaintiff alleges that the Registration Statement failed to disclose that SciPlay was experiencing technical issues in the months immediately preceding the IPO and that as a result SciPlay’s monthly active users were decreasing compared to the previous’ year
comparable quarter, SciPlay was unable to increase marketing spends and ultimately attract new players; and SciPlay’s quarterly financial results for the second fiscal quarter of 2019 would be impacted.