MYPS.US
id: 1477
Playstudios (MYPS) Investor Settlement
The court has approved the settlement.
$6,500,000
Cash SettlementD. Nevada
Court2:25-cv-00194
Case number06/22/2021
Class period Start03/01/2022
Class period EndPlaystudios has reached a settlement with $MYPS investors over claims that it misled them about its financial performance and the expected success of its flagship game.
Outline:
In 2021, Playstudios assured investors that Kingdom Boss would be a major revenue driver, projecting $60 million in earnings. However, the company later revealed that the game project had been abandoned due to severe development issues. Following this disclosure, $MYPS dropped sharply. On July 1, 2022, investors filed a lawsuit, claiming Playstudios misrepresented the viability of Kingdom Boss.
Timeline:
- June 22, 2021: Playstudios went public via SPAC merger with Acies Acquisition.
- February 24, 2022: Playstudios reported lower-than-expected 2021 revenue and announced the cancellation of Kingdom Boss, causing a 4.7% drop in $MYPS.
- May 5, 2022: The company reported further revenue declines, and $MYPS fell 17%.
- July 1, 2022: Investors filed a lawsuit, citing false revenue projections and unrealistic expectations for Kingdom Boss.
- January 2025: Playstudios reached a settlement with investors.
Background:
Playstudios went public in June 2021, and promoted Kingdom Boss as a key growth opportunity, assuring investors that the game would generate $60M in revenue. The company repeatedly highlighted its strong market potential and emphasized its ability to deliver sustained financial growth.
However, on February 24, 2022, Playstudios announced that Kingdom Boss had been canceled, citing major development failures.
This disclosure came alongside lower-than-expected revenue results, revealing that the company’s earlier projections were overly optimistic.
By May 2022, Playstudios reported additional financial setbacks, confirming that revenue growth had slowed further. Following these revelations, $MYPS stock fell 17%.
As a result, on July 1, 2022, investors sued Playstudios, arguing that the company misled them about Kingdom Boss and its financial expectations.
What Can Investors Expect Now?
Playstudios has reached a settlement with $MYPS investors over claims that it misled them about its financial performance and the expected success of its flagship game.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Type
US Securities Class Action
Case Status
Preliminary Approved Settlement
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.3
Filing date
04/05/2022
Plaintiffs
Jason Stenson
Attorneys
Glancy Prongay & Murray LLP
Defendants
Andrew Pascal; Scott Peterson
Settlement agreement date
2025-03-06
Attorney fee
$1,410,000
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
How much will my payment be?
How to get your payout?
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