DraftKings is under federal investigation by the Securities and Exchange Commission over its acquisition of SBTech, a sports betting technology provider based in Bulgaria.
In an earnings report released Friday, DraftKings acknowledged that two federal securities law putative class actions were filed against the company and certain officers in July in the U.S. District Court of the Southern District of New York. The actions allege violations of the Securities Exchange Act related to DraftKings’ purchase of SBTech and stem from a report by financial research firm and short seller Hindenburg Research.
“It is not uncommon for the SEC to investigate allegations” in short-seller reports, a DraftKings spokesperson wrote in a statement to ESPN.
