We are investigating SciPlay Corporation (SCPL) (“SciPlay” or the “Company”) for potential violations of the federal securities laws.
On or around May 2, 2019, SciPlay conducted its initial public offering (“IPO”), issuing 22 million shares of Class A common stock priced at $16.00 per share. On August 2, 2019, SciPlay issued its financial results for the second quarter of 2019, reporting disappointing growth in both revenue and active users. During the related earnings call, the Company admitted to experiencing technical issues on the SciPlay platform, citing “third-party software.” Then, on September 19, 2019, Bank of America Merrill Lynch double-downgraded its recommendation on SciPlay’s stock from “Buy” to “Underperform.” The bank also cut its price target on SciPlay stock from $17.00 per share to $12.00 per share, citing “lack of catalysts in terms of new games/markets to surprise the upside” along with softer-than-expected growth. Since the IPO, SciPlay’s stock has closed as low as $8.55 per share, representing a decline of nearly 47% from the offering price.