StockWatch
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LegalJul 28, 2026, 05:31 PM

Firy Inc. Subsidiary Awarded $719M in False Advertising Lawsuit

AI Summary

Firy Inc. announced that a U.S. District Court judge ordered Papaya Gaming to pay $719 million in disgorgement of unjust profits to its wholly-owned subsidiary, Skillz Platform Inc. This award, stemming from a 2024 false advertising lawsuit, also includes attorney's fees and costs. The $719 million judgment is nearly $300 million more than the $420 million in actual damages initially awarded by a jury in April 2026. Firy Inc. plans to aggressively pursue collection, though timing and amount of recovery are subject to appeal.

Key Highlights

  • U.S. District Court ordered Papaya Gaming to pay $719 million in disgorgement to Skillz Platform Inc.
  • Award includes certain attorney's fees and costs for the false advertising lawsuit.
  • The $719 million award is nearly $300 million higher than the initial $420 million jury award.
  • Lawsuit filed in 2024 against Papaya Gaming for violations of federal Lanham Act.
  • Evidence showed Papaya's bots won approximately $4.7 billion in prize money between 2021-2024.
  • Firy Inc. intends to vigorously pursue full collection of the judgment.