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.

"We founded this industry and built its biggest and best company on one value above all others: honor," said Andrew Paradise, CEO and Founder of FIRY. "When growth stalled, investors decided our moat was a story. It was not. In a winner-take-most market, Papaya could not beat us fairly, so it used bots to fake the competition we invented. This judgment sets the record straight. The moat was real. Fourteen years in, on our path to one hundred, Skillz is back to defining what this industry was built for: fair, fun, and meaningful competition."

The $719 million disgorgement, found by both the jury and the Court as the appropriate measure of recovery, was entered in lieu of the $420 million 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 $6.7 billion in prize money Papaya advertised, roughly $4.7 billion, was never actually paid to customers because Papaya’s bots "won" the prizes instead. Papaya’s more than 13 million bot participants outnumbered its roughly 11 million real human players. In April 2026, the jury awarded the Company $420 million 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 $10 million 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.