DraftKings Defeats Investor Class Action Over SBTech Acquisition

Investors can’t proceed with claims that DraftKings Inc. failed to disclose a company it acquired had a history of illegal operations that exposed it to liability, a federal court in New York ruled Tuesday.

The stockholders didn’t supply sufficient facts about alleged legal violations involving SBTech (Global) Ltd. or DraftKings misstatements to support their would-be class suit, Judge Paul A. Engelmayer said for the US District Court for the Southern District of New York.

They also didn’t show the necessary state of mind for the securities fraud claims to proceed, Engelmayer said. He dismissed the case with finality.

The investors’ ...