Yu further asserts that the defendants, who were then in control of DraftKings, \u201cwillfully or recklessly made and\/or caused the Company to make false and misleading statements\u201d concerning SBtech\u2019s operations, so they could benefit financially from the merger.<\/p>\n
The Individual Defendant\u2019s misrepresentations had the effect of misleading the investing public and artificially inflating the Company\u2019s stock during the Relevant Period, during which time at least seven Individual Defendants benefited from lucrative insider sales at artificially inflated prices for proceeds of approximately $825.3 million,\u201d the lawsuit states.<\/p><\/blockquote>\n
DraftKings is already the subject of two pending class-action lawsuits which make similar claims. It was also subpoenaed by the US Securities Exchange Commission (SEC) in the wake of the Hindenburg allegations. The company has said it is cooperating with that investigation.<\/p>\n
Yu\u2019s lawsuit is a shareholder derivative action, which allows a minority shareholder to sue majority shareholders on behalf of the company. It seeks financial restitution for DraftKings from individual defendants and costs for the plaintiff.<\/p>\n","protected":false},"excerpt":{"rendered":"
A lawsuit filed Friday in a New York federal court accuses several DraftKings directors of breach of fiduciary duty and unjust enrichment. The 103-page complaint brought by shareholder Jiahan Yu alleges the defendants caused the company to engage in \u201cillicit operations,\u201d thereby exposing it to \u201cheightened risk of criminal or regulatory enforcement actions.\u201d This is […]<\/p>\n","protected":false},"author":36,"featured_media":188898,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60,32093],"tags":[],"acf":[],"yoast_head":"\n
DraftKings Hit by Lawsuit Alleging \u2018Unjust Enrichment\u2019 in SBTech Deal<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n