Defendant Name: DraftKings Inc.

Defendant Type: Public Company
SIC Code: 9999
CUSIP: 26142V10

Initial Case Details

Legal Case Name In the Matter of DraftKings Inc.
First Document Date 26-Sep-2024
Initial Filing Format Administrative Action
File Number 3-22205
Allegation Type Issuer Reporting and Disclosure

Violations Alleged

Exchange Act
• Sec 13(a)
Other
• Regulation FD
• Regulation FD

Resolutions

First Resolution Date 26-Sep-2024
Headline Total Penalty and Disgorgement $200,000

Related Documents:

34-101198 26-Sep-2024 Administrative Proceeding
Order Instituting Cease-And-Desist Proceedings, Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-And-Desist Order
On September 26, 2024, the SEC instituted settled cease-and-desist proceedings against DraftKings, stating: "This matter concerns Massachusetts-based publicly-traded company DraftKings’ violation of Regulation FD, a rule under the Exchange Act that prohibits public companies from selectively disclosing material, nonpublic information to certain persons outside the company. In July 2023, material, nonpublic information concerning DraftKings’ second quarter 2023 (the quarter ended June 30, 2023) earnings was selectively disclosed to certain persons outside the company via social media, specifically the personal X (formerly Twitter) and LinkedIn accounts in the name of DraftKings’ CEO operated by DraftKings’ public relations firm."
2024-149 26-Sep-2024 Press Release--Administrative Proceeding
SEC Charges DraftKings with Selectively Disclosing Nonpublic Information Via CEO's Social Media Accounts
On September 26, 2024, the SEC "today charged DraftKings Inc. with selectively disclosing material, nonpublic information to investors who followed or otherwise viewed the company CEO’s social media accounts without disclosing that same information to all investors, in violation of Regulation Fair Disclosure (FD). DraftKings agreed to pay a $200,000 civil penalty to settle the SEC’s charges."