San Francisco-based King Digital, maker of “Candy Crush saga,” is facing a class-action lawsuit that claims the company deliberately hid a significant fall in the number of users ahead of its IPO last year. Also Read - 400 new games coming to Google Stadia cloud gaming platform
The case, which was filed on Tuesday in California Superior Court, by investors Sean Debotte and Michael Nunes accused King Digital of misleading investors in its federal documents, Mashable reported. The suit said that the company claimed that 97 million active users played 1.065 billion average daily games of Candy Crush ahead of the company’s initial public offering a year ago. Also Read - Flipkart Acquires Gaming Startup Mech Mocha’s IP to Strengthen Gaming Strategy
However, that figure had witnessed a “significant decline” as once-paying customers began to leave the game. The suit argued that the company should have revealed the real numbers at the time of the IPO. Also Read - Asus ROG Zephyrus S17 GX701 Review: For serious gaming at a serious price
According to the company’s official IPO filings, Candy Crush Saga accounts for nearly 80% of King’s business. The firm sold shares worth 499.5 million dollars to the public last year at 22.50 dollars per share. King executives earned millions, as did their financial backers, the lawsuit said.