DraftKings discloses SEC subpoena concerning allegations by short seller Hindenburg

2 months ago 16
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Shares of DraftKings Inc. DKNG, +3.72% ran up 7.3% successful premarket trading Friday, aft the sports betting institution raised its full-year gross outlook, but the institution disclosed an probe by the Securities and Exchange Commission concerning allegations implicit "black-market gaming" and wealth laundering made by abbreviated seller Hindenburg Research. DraftKings said successful its 10-Q filing with the SEC that it received a subpoena connected July 9 from the SEC seeking documents concerning definite of the allegations. The institution said it is cooperating with the SEC's inquiry, and said contempt the "potential for important damages," it does not judge the result of the proceeding volition person a worldly adverse effect connected its financials. On June 15, Hindenburg said its probe showed that SBTech, which was portion of the three-way merger that took DraftKings public successful April 2020, had an ongoing grounds of operating successful achromatic markets, and has sold to "plenty of mobs." DraftKings banal hsa slipped 2.7% implicit the past 3 months, portion the S&P 500 SPX, +0.60% has gained 5.4%.

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