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DraftKings Investigation Notice: Levi & Korsinsky Notifies Investors of Pending Investigation Into DraftKings (DKNG)
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DraftKings maintained its 2026 revenue guidance on August 7, 2026, then lowered it on November 6 while citing $650 million to $700 million of Predictions investment. Levi & Korsinsky investigates.
NEW YORK, Nov. 6, 2026 /PRNewswire/ -- DraftKings Inc. (NASDAQ: DKNG) lowered its full-year 2026 revenue guidance on November 6, 2026 to approximately $6.35 billion to $6.55 billion, below the $6.5 billion to $6.9 billion range it had maintained three months earlier, and shares fell more than 25% by market open. If you bought DKNG while the higher range was in place, you have rights as a shareholder, and the losses from this reset may be recoverable. Shareholders who lost money on DKNG are encouraged to submit your DraftKings loss information now. You may also contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.
The higher range was reaffirmed on August 7, 2026. On the Company's second-quarter call that day, CFO Alan Ellingson said: "Given the strength of our core business and our ongoing expectations to invest in Predictions, today, we are maintaining our fiscal year 2026 guidance ranges." Elsewhere in the call, CEO Robins confirmed they were still "planning on investing an incremental $200 million to $300 million this year."
The November 6 earnings release attributed the reset primarily to increased "investment in Predictions of $650 million to $700 million." The new guidance midpoint of $6.45 billion sits $250 million below the prior $6.7 billion midpoint. The top of the new range, $6.55 billion, is $350 million below the top of the range reaffirmed in August. Levi & Korsinsky is investigating potential securities law violations on behalf of DKNG shareholders who suffered losses.
If the guidance cut left you holding DKNG losses, request a no-cost review of your shareholder rights or call (212) 363-7500.
Levi & Korsinsky, LLP | Top 50 Securities Firm | (212) 363-7500 | www.zlk.com
Frequently Asked Questions About the DKNG Investigation
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: When did DraftKings allegedly mislead investors? A: The investigation concerns statements made before the November 6, 2026 corrective disclosure that allegedly caused investors to purchase DKNG securities at inflated prices.
Q: Who is eligible to participate in the DKNG investigation? A: Investors who purchased 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: 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 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.
Q: Do I need to go to court or give testimony? A: No. Participating in the investigation does not require court appearances or depositions. If legal action is later pursued, the overwhelming majority of affected investors never appear in court either.
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
Attorney Advertising. Prior results do not guarantee similar outcomes.
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SOURCE Levi & Korsinsky, LLP
