Noticias y eventos de Firy Inc (FIRY)FIRYFiry Inc

Papaya Gaming Files for Israeli Bankruptcy Protection, Faces $719M Judgment

Firy provided an update on proceedings that were initiated by Papaya Gaming and its U.S. subsidiary pursuant to the Israeli Insolvency Act in the District Court of Tel Aviv-Jaffa, in which FIRY's wholly owned subsidiary, Skillz Platform, is Papaya's largest creditor. The company said, "On August 26, 2026, Judge Lushi-Abudi rejected Papaya's motion to convene creditors' meetings in order to vote on its proposed debt settlement and stated that Papaya should strengthen its proposed creditor repayment plan that currently relies only on operating profits, with the risks thereto, without any securities, or equity contribution. Therefore, the court stated that Papaya should improve its proposed debt settlement by adding funding beyond just operating profits. At the hearing that took place on August 25, the Judge mentioned that the proposal could also be improved by increasing the amount paid into the arrangement following its approval, using funds that Papaya would raise through a rights offering, the entry of an investor, or another means. Judge Lushi-Abudi appointed Attorney Gil Oren of the firm Arnon, Tadmor-Levy as an arrangement manager, whose role is to work with Papaya and its creditors to formulate the improved plan. The Israeli proceeding remains subject to a temporary 45-day pause on collection efforts while that work proceeds. Papaya told the court that it holds approximately $151M in cash. Its counsel also represented that the business remains profitable, and Papaya's motions noted gross margins above 90% in recent years. Papaya's initial proposal contemplated funding a court-supervised fund from the profits of its continuing operations over six and a half years. However, the court held that relying on operating profits alone was insufficient and stated that the debt settlement should be revised, inter alia, by including additional sources of capital. During the hearing, the Judge suggested that it is a possibility that within the revised debt settlement, the managers and shareholders of Papaya that received dividends would contribute capital of their own. Per Papaya's attorneys at the hearing, the company distributed a $10M dividend at the end of 2025. The Israeli court also stated within the hearing that it would not address Papaya's arguments regarding the U.S. judgment against it, and that usually the likelihood that a well-reasoned judgment would be overturned on appeal is low. In April 2026, a unanimous federal jury found Papaya liable for false advertising under the federal Lanham Act and the New York General Business Law and awarded Skillz $420M, marking the largest false advertising jury verdict in U.S. history. On July 27, 2026, the U.S. District Court for the Southern District of New York ordered Papaya to pay Skillz $719M in disgorgement of Papaya's unjust profits from false advertising, in lieu of the jury's award, plus approximately $10M in attorney's fees and certain costs. The court denied all of Papaya's post-trial motions challenging the verdict. Papaya has said it intends to appeal the judgment to the U.S. Court of Appeals for the Second Circuit but has not yet posted a bond securing the judgment. On August 3, Papaya petitioned the U.S. Bankruptcy Court for the District of Delaware under Chapter 15 of the U.S. Bankruptcy Code to recognize the Israeli insolvency proceeding. On August 9, that court granted temporary relief pausing certain collection efforts against Papaya's U.S. assets while it considers the petition."

FIRY Reports Q2 Revenue of $31M, Below Consensus

Reports Q2 revenue $31M, consensus $32.14M. Reports paying monthly active users of 117 thousand and average revenue per PMAU of $59.1. "Q2 2026 was, without question, the most consequential period in the Company's recent history," said FIRY CEO Andrew Paradise.

Firy Wins $719M Judgment Against Papaya Gaming

Firy announced a post-trial victory over Papaya Gaming: the U.S. District Court for the Southern District of New York issued an order stating that it will enter judgment against Papaya Gaming of $719M in disgorgement of Papaya's unjust profits to FIRY's wholly owned subsidiary, Skillz Platform, plus an award of certain attorney's fees and costs, nearly $300M more than the jury's April award. The false advertising lawsuit was filed in 2024 against Papaya Gaming for violations of the federal Lanham Act and the New York General Business Law. The $719M disgorgement, found by both the jury and the Court as the appropriate measure of recovery, was entered in lieu of the $420M in actual damages awarded in April 2026, as the Company is entitled to recover once for its injury. A unanimous federal jury found Papaya's advertising was false. The evidence showed that between 2021 and 2024, approximately 70% of the $6.7B in prize money Papaya advertised, roughly $4.7B, was never actually paid to customers because Papaya's bots "won" the prizes instead. Papaya's more than 13M bot participants outnumbered its roughly 11 million real human players. In April 2026, the jury awarded the Company $420M in actual damages, the largest false advertising verdict in U.S. history under the Lanham Act. The Court has now denied all of Papaya's post-trial motions challenging the verdict. The Court also awarded the Company approximately $10M in attorney's fees for 2024 and 2025. Separately, the Court awarded certain litigation costs arising from Papaya executives' invocation of the Fifth Amendment during discovery. A separate opinion addressing the Company's request for injunctive relief is forthcoming. The Company intends to vigorously pursue full collection of the judgment; however, no assurance can be given as to the timing or amount of any ultimate recovery, including in light of any appeal or further proceedings.