Papaya ordered to pay $719 million in Skillz dispute as Israeli gaming company prepares appeal
The ruling follows an April jury decision that found Skillz suffered hundreds of millions of dollars in damages. Papaya said it was “deeply disappointed” and will continue pursuing its legal claims.
Israeli gaming company Papaya announced that it will appeal a ruling by Judge Denise Cote of the U.S. District Court for the Southern District of New York, who ordered the company to pay $719 million in ongoing litigation brought by Skillz. Papaya said it is preparing to file an appeal with the federal appeals court.
The ruling followed an April jury decision that found Skillz had suffered $420 million in damages and recommended that the court award additional amounts intended to reflect, according to Skillz, profits that Papaya generated during the period examined in the trial. Following the jury verdict, Papaya filed a series of motions seeking to overturn the decision, hold a retrial, and reduce the damages awarded. At the same time, Skillz filed motions seeking to increase the amount, add interest, and include legal expenses and additional remedies.
Earlier this week, Papaya announced that it would lay off 30 employees, saying the decision was unrelated to the ongoing legal proceedings. Before the layoffs, the company employed approximately 400 people.
The court rejected the requests submitted by both Papaya and Skillz and adopted the jury’s recommendation, awarding Skillz $719 million based on profits attributed to Papaya.
Papaya expressed disappointment with the ruling, saying the decision does not conclude the legal process and that the company intends to fully exercise its legal rights through the appeals process.
