SKLZ Stock Soars To Its Highest In 33 Months After Winning A $420M Lawsuit

• SKLZ wins $420 million in a case filed in New York.
• SKLZ had also won a case against another competitor back in 2024.
• The stock has soared to its highest since July 2023.

Skillz (SKLZ) stock more than tripled to its highest since July 2023, after it won a $420 million judgment in a court case against its rival and Israel-based mobile gaming platform Papaya Gaming, after a jury ruled in its favor against allegations that Papaya used bots to defraud human players in its human-only multiplayer games.

“Skillz proved at trial that Papaya used bots in its games, which is the issue at the core of Skillz’s claims around false advertising, deceptive trade practices, and transparency in the skill-based gaming industry. Papaya conducted a multi-year campaign of fraud and false advertising that materially damaged Skillz and the skill-based gaming industry,” Skillz said in a statement. 

The jury ruled in favor of Skillz on all its claims, including actual damages of $420 million, along with advisory profits disgorgement of $719 million and advisory cost-saving disgorgement of $652 million. 

While the advisory aspects are yet to be decided, the judge can increase the total award based on them, depending on the damage theories the judge decides to accept, according to Gamesbeat. 

While Papaya is based in Israel, many of its customers were in the U.S., which is why SKLZ  sued in New York.

Other Lawsuits

Skillz's lawsuit against Papaya alleges claims similar to those in its successful civil case against Avia Games in 2024.

In the Avia Games case, Skillz was awarded a $42 million judgment after the company was found to have used bots to trick human players into believing they were competing against other people in wagered skill-based games. That lawsuit ultimately concluded with Skillz settling for $80 million.

What Do Retail Traders Say?

One user raised doubts if Papaya Gaming will be able to afford the fine. 

Another user highlighted that the stock will see action in after-hours trading 

The stock gained 119% year-to-date. 

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