Slot Machine Maker PlayAGS Defeats Remaining Securities Claim

Investors suing PlayAGS Inc. failed to show that the company engaged in a scheme to artificially inflate its share prices through misrepresentations and omissions, a federal court said.

Because the lead plaintiff, the Oklahoma Police Pension and Retirement System, previously failed to allege PlayAGS intentionally or knowingly made misleading statements, its scheme liability claim failed, the US District Court for the District of Nevada said in a Feb. 12 order entered Tuesday. The court dismissed the suit with prejudice.

Scheme liability and claims for misrepresentation both come from a subsection of Rule 10(b) of the Exchange Act broadly prohibiting fraudulent ...