According to the Complaint, PlayAGS, Inc. is a designer and supplier of electronic gaming machines. It operates with three business segments: (i) electronic gaming machines (“EGM”), which comprises 95% of the Company’s revenue and provides 380 game titles on EGM cabinets; (ii) table products, including live felt table games, side bet offerings, progressives, signage, and other ancillary table game equipment; and (iii) interactive, which offers social casino games including online versions of the Company’s game titles.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that PlayAGS was experiencing challenges in its business in Oklahoma; (2) that, as a result, the Company’s recurring revenue would be negatively impacted; (3) that PlayAGS was experiencing challenges in its Interactive business segment, including delays in securing regulatory approvals and relevant licenses; (4) that, as a result of the foregoing, PlayAGS was reasonably likely to record a goodwill impairment; and (5) that as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On October 28, 2020, the Court issued an Order to consolidate cases and appoint Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 20-CV-01209.
Lead Plaintiff filed a consolidated Complaint on January 11, 2021. On March 25, Lead Plaintiff filed an amended consolidated Complaint. Defendants filed Motions to Dismiss the amended consolidated Complaint on May 24. On December 2, 2022, the Court issued an Order granting in part and denying in part Defendants' Motions to Dismiss. Lead Plaintiff was given leave to amend the Complaint.
Defendants filed a Motion for Judgment on the pleadings on January 17, 2023. On February 12, 2024, the Court issued an Order granting Defendant's Motion. The case was dismissed with prejudice.
Lead Plaintiff filed a notice appealing the Court's Judgment on March 14, 2023.