NEW YORK, Nov. 11, 2026 (GLOBE NEWSWIRE) -- DraftKings Inc. (NASDAQ: DKNG) investors watched roughly 25% of their share value disappear on the morning of November 6, 2026, after the Company put a $650 million to $700 million price tag on its Predictions business, a significant increase over the previous $200 million to $300 million projection from the Company. If you bought DKNG and are now holding a loss, you may have legal rights. Shareholders who lost money on DraftKings are encouraged to submit their loss details for review. You may also contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.
The investigation centers in part on what DraftKings previously told investors regarding the cost of its prediction markets. In its Form 10-Q released November 6, 2026, the Company stated that third-quarter revenue rose $185.0 million, "partially offset by promotional investment associated with the launch of our prediction markets offering." On the same day, DraftKings attributed its reset of 2026 expectations primarily to increased investment in Predictions of $650 million to $700 million.
Three months earlier, CEO Jason D. Robins assured investors that, “[t]here’s always little pieces moving around that affect things, for sure. But the big components to think about are, number one, core business is on track to do approximately $1 billion in adjusted EBITDA … and then $200 million to $300 million of Predictions investment expected on the year.” Levi & Korsinsky is investigating potential securities law violations, including whether those filings may have fallen short of adequately disclosing the scale of the Company's prediction-markets spending.
If you purchased DraftKings stock and suffered a loss, request your free case evaluation today or call (212) 363-7500.
WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered billions of dollars for investors.
Frequently Asked Questions About the DKNG Investigation
Q: Who is eligible to participate in the DKNG investigation? A: Investors who purchased DraftKings (NASDAQ: DKNG) stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: How much did DKNG stock drop? A: Shares opened down roughly $6.18 per share, a decline of about 26.28% to open at around $17.34 per share on November 6, 2026. The decline followed the Company's disclosure of third-quarter results, including a $469 million net loss, and a reduced fiscal 2026 revenue outlook. Investors who purchased shares at allegedly inflated prices and suffered losses may be eligible to seek compensation.
Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether DraftKings made materially false or misleading statements regarding its fiscal year 2026 revenue guidance and the scale of its planned investment in Predictions. When the Company disclosed a reduced FY2026 revenue guidance range of approximately $6.35 billion to $6.55 billion and $650 million to $700 million of investment in Predictions on November 6, 2026, the stock price declined sharply.
Q: What do DKNG investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible to participate in the investigation.
Q: What documents do I need to participate? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
Q: What if I already sold my DKNG shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought DKNG and sold at a loss may still participate in the investigation.
Q: What if my DKNG losses are small -- is it still worth contacting a lawyer? A: Yes. There is no minimum loss amount required to participate in the investigation.
Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in any resulting action, these matters are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
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