Papaya to appeal US court ruling after being ordered to pay Skillz 719 million dollars
Israeli gaming company Papaya announced it will appeal a New York federal court ruling ordering it to pay $719 million to Skillz. The lawsuit involves allegations of misleading advertising and the use of bots in games.
The Israeli gaming company Papaya announced that it will appeal the decision of Judge Denise Cote in the federal court for the Southern District of New York. The judge ruled against the company for a sum of 719 million dollars as part of the legal proceedings conducted against it by Skillz.
Skillz filed a lawsuit in New York alleging misleading advertising and violation of consumer protection laws. According to Skillz, Papaya marketed its games as fair, skill-based tournaments between human players, even though in practice bots were used to influence game results, harming players and causing competitive damage.
The decision followed a jury determination in April that Skillz had suffered damages of 420 million dollars, alongside a recommendation for additional amounts to reflect profits generated by Papaya during the period examined in the trial. Following the verdict, Papaya filed motions to vacate the decision and for a new trial, while Skillz filed motions to increase the amount and add interest and expenses.
The court has currently rejected the motions from both parties and adopted the jury's recommendation of 719 million dollars regarding profits attributed to the company. Papaya expressed deep disappointment with the ruling, clarifying that the legal process is not over and that it will act to exhaust all its rights.
This week, the company announced the layoff of 30 employees, noting that the move is unrelated to the court proceedings. Prior to the layoffs, the company employed approximately 400 workers.
