TLDRManhattan federal jury determined Papaya Gaming guilty of deceptive advertising practices and mandated a $420 million payment to SkillzJury determined Skillz qualifies for an additional $652 million disgorgement award, pending judicial approval in early JuneSKLZ shares skyrocketed as much as 443% reaching $20 during Thursday’s session before settling at $12.45, up 238%Legal dispute focused on Papaya’s alleged deployment of automated bots rather than real players and falsely claiming $4.7 billion of its reported $6.7 billion in player payoutsFollowing Thursday’s explosive gains, SKLZ retreated 25% during Friday’s pre-market sessionSkillz secured a significant legal triumph against a competitor. In a landmark decision Thursday, a Manhattan federal jury determined that Papaya Gaming Ltd. violated advertising standards through deceptive practices, mandating a $420 million damages payment to the mobile gaming company.Skillz Inc., SKLZThe ruling emerged following a week of courtroom proceedings at the US District Court for the Southern District of New York. Eight jurors spent just over 48 hours in deliberation before delivering their conclusion. Although initially scheduled for a two-week duration, the trial concluded ahead of schedule after final arguments wrapped up on April 20.SKLZ shares reacted dramatically to the announcement, skyrocketing as much as 443% to reach $20 intraday on Thursday before closing the session up 238.32% at $12.45, based on data from Benzinga Pro.Beyond the $420 million in compensatory damages, jurors concluded that Skillz deserves an additional $652 million through disgorgement. Judge Denise Cote will determine the final amount of that claim with a decision anticipated in early June.What Was the Case About?Skillz alleged that Papaya Gaming misled its user base by deploying automated bots in specific gaming experiences and competitive tournaments without proper disclosure. The company further contended that while Papaya publicly promoted $6.7 billion in total player winnings, approximately $4.7 billion of that figure represented payouts to automated systems rather than actual human competitors.During final arguments, Papaya mounted a defense against the allegations. The company maintained that no evidence demonstrated it profited from the disputed portion of winnings, emphasizing that its complete revenue totaled less than $1 billion.The jury ruled in favor of Skillz’s position.“We’re pleased with the jury’s verdict and appreciate the careful consideration of the facts,” Skillz said in a statement. “We remain committed to fair competition and to providing a trusted, transparent experience for players and developers.”Friday Pullback After the RallyRapid gains often lead to swift reversals. Following Thursday’s remarkable surge, SKLZ declined 25.14% to $9.20 during Friday’s pre-market activity.Such corrections following dramatic single-session movements are typical for smaller capitalization equities.Skillz maintains a market capitalization of $194.23 million. The stock’s 52-week peak stands at $20 — achieved during Thursday’s intraday surge — while its yearly low rests at $2.23. Current trading levels position the shares roughly 57.51% above that floor.The Relative Strength Index for SKLZ registers at 91.38, indicating severely overbought conditions. Throughout the trailing twelve months, the stock has appreciated 159.38%.Benzinga’s Edge Stock Rankings indicate SKLZ demonstrates bullish price momentum across all measured timeframes.Judge Cote’s ruling regarding the $652 million disgorgement petition is scheduled for early June.The post Skillz (SKLZ) Stock Rockets 238% Following $420M Courtroom Victory Over Papaya Gaming appeared first on Blockonomi.