Co-Founders Liberman and Robins Sell Over $10M of DraftKings Shares
DraftKings co-founders Paul Liberman and Jason Robins have collectively sold over $10 million worth of the company’s shares in the last few days.
Liberman and Robins Sold Thousands of Shares
Liberman, who serves as DraftKings’ president of global tech and product, sold 78,466 shares on Monday for approximately $3.15 million. The shares were sold in several transactions, with their price differing from transaction to transaction. The sales were in line with a pre-arranged 10b5-1 trading plan.
In the meantime, Liberman acquired 88,441 shares of Class A common stock at a price of $0.63 per share. The total value of this acquisition stood at $55,717.
A few days earlier, CEO Robins dumped a whopping 183,461 shares for a total of $6.45 million. Within the same day, Robins also sold 16,539 shares for more than $593,000. The total value of these transactions stood at more than $7 million.
According to the filing, Robins also sold 2,828 shares for roughly $100,000.
Like Liberman, Robins also acquired Class A common stock shares following the aforementioned transaction. He purchased some 200,000 such shares at a price of $0.63 per share for a total of $126,000.
Not the First Time DraftKings Insiders Have Traded Company Stock
This isn’t the first time Robins has engaged in insider trading. According to prior filings, the DraftKings CEO sold some 20,000 shares for $6.14 million on August 8. In May, he dumped an additional 20,000 shares for $8.78 million. It should be noted that most of the DraftKings insider sales are in accordance with automated trading plans.
Despite the sales, both Liberman and Robins continue to hold significant stakes in the American betting company. Furthermore, DraftKings isn’t the only company whose leadership has been divesting shares, echoing the controversial approach of competitor Rush Street Interactive.
Liberman and Robins’ sales notably come several weeks following the launch of DraftKings’ inaugural share buyback program. They were also preceded by a temporary slump in the company’s share price that was triggered by the operator’s mulled introduction of a surcharge. The idea, however, proved to be hugely unpopular, immediately affecting the performance of DraftKings stock.
In the meantime, DraftKings continues to be embroiled in a number of lawsuits, including one with the NFL Players Association and another with the Public Health Advocacy Institute.
Another lawsuit was recently dropped by the plaintiff, although the exact reason was not publicly announced.
