Just a week after the CEO of Amaya was forced to take a leave of absence due to an insider trading accusation, the company is being sued by Rosen Law Firm (Rosen). The class action lawsuit is seeking to recover damages for Amaya investors under federal securities law.
Rosen, a global investor-rights law firm, claims Amaya, the parent company of PokerStars and Full Tilt, issued false or misleading statements to investors. News of insider trading allegations by CEO David Baazov broke last week when Quebec’s securities regulator filed five charges against him.
The law firm claims statements issued by Amaya failed to disclose that:
Rosen further claims that, as a result of the above, statements about Amaya’s business operations and prospects were false and misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
Mattie v. Amaya was filed Friday in New York and, in addition to naming the corporation, also names Baazov and CFO Daniel Sebag as defendants. The lead plaintiff is Jason Mattie, an investor who bought stock three times between June 8, 2015, and March 22, 2016 (when news of Baazov’s indictments were announced).
Following news of the charges against him personally by the Quebec securities regulator (AMF), Baazov issued a statement reading: “These allegations are false and I intend to vigorously contest these accusations. While I am deeply disappointed with the AMF’s decision, I am highly confident I will be found innocent of all charges.”
While Sebag was not one of the 17 people who were charged in the original insider trading complaint, the new lawsuit says he was active in disseminating information he knew to be false in order to assist the insider trading scheme.
The complaint also says Mattie believes he is just one of hundreds, or even thousands, to have been affected by this. The lawsuit requests trading records to discover all investors who may have been affected.
(Photo credit: Amaya Gaming.)
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