Shares in Playtech PLC (LSE:PTEC) fell 34% after rival Evolution AB said it will amend an ongoing defamation lawsuit in the US to include a subsidiary of the FTSE 250-listed company, after court proceedings revealed its alleged role in commissioning a 2021 report it claims was intended to cause the business harm.
The report was produced by Black Cube, a private intelligence agency, and submitted to US gaming regulators and media outlets in November 2021 via the law firm Calcagni & Kanefsky LLP.
According to Stockholm-listed Evolution, the report included serious allegations about its business practices that were later dismissed by regulators and found by a New Jersey Superior Court to lack credibility.
In a statement, Evolution alleged that Playtech paid more than £1.8 million to Black Cube to produce the report and claimed that the firm used "unethical tactics", including covert recordings and false identities, to gather information from former employees.
Evolution further alleged that Black Cube edited those recordings to support a predetermined narrative.
Playtech has not commented publicly on the matter. At the time of writing, neither Playtech PLC nor Black Cube has been found liable for defamation or wrongdoing by the court, and proceedings remain ongoing.
Evolution filed its original lawsuit in December 2021, naming Calcagni & Kanefsky LLP and unnamed parties, now identified as Black Cube and Playtech, as defendants.
In February 2024, the New Jersey Division of Gaming Enforcement and the Pennsylvania Gaming Control Board concluded their investigations into Evolution without action. In a subsequent ruling, the New Jersey Superior Court stated there was “no evidence” of illegal conduct by Evolution, and described the 2021 report as “not truthful.”
A court order in September 2025 compelled Black Cube to reveal the identity of its client, following earlier unsuccessful attempts to withhold the information on appeal.
In the lawsuit against Calcagni & Kanefsky in New Jersey, the presiding judge found that the firm "prepared and disseminated false allegations about [Evolution’s] business practices that were designed to harm, and did harm, [Evolution’s] business.” The judge also ordered the firm to reveal the identity of the parties responsible for the report.
In its Tuesday statement, Evolution said: "It is deeply disturbing to learn that one of our competitors has gone to such extraordinary lengths to damage our business and reputation".
The Swedish company added: "We are confident in our legal position and look forward to finally holding Playtech and its accomplices to account for the significant harm they have caused."
Playtech shares fell to 118.5p to 222p, their lowest since early 2020.