Markets rarely hand you a clean morality play. On Monday night, a federal judge entered one, clocking in no less than 78 pages, in the public docket. And for anyone who has played one of America's chart-topping “skill gaming” apps - a group that certainly includes many readers of this site - this may be for you.
A federal trial has now established that at Papaya Gaming, the private Tel Aviv-based publisher of Solitaire Cash and Bingo Cash, the “humans” across the table were actually quite often programmed bots.
The winner in all of this is Firy, Inc. (of the eponymous FIRY ticker), the operator that played the SPAC game to a $3.5 billion valuation in 2020, roundtripping 96% to a $130 million market cap with an estimated 20% of its float sold short.
Needless to say, at a market cap of a paltry $130 million, the market had written the whole thing off, pricing FIRY below the $185 million of cash on its latest, March 31st balance sheet, never mind the platform or anything else left on either side of the ledger.
But all that changes now. FIRY led the lawsuit against Papaya and is the beneficiary of a $719 million award handed down overnight, well over 5 times its market cap. This is the judge’s ruling after a $420 million jury award and Papaya’s failed attempts to get the case tossed out.
What Papaya did, in the court's own words (from Monday’s Opinion)
