Skillz (now Firy) wins $719M judgment against Papaya Gaming in largest false advertising award in history

Firy, formerly known as Skillz, won a $719 million judgment against Papaya Gaming in its long-running false advertising case. 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 $719 million in disgorgement of Papaya’s unjust profits to FIRY’s wholly owned subsidiary, Skillz Platform Inc., plus an award of certain attorney’s fees and costs, nearly $300 million more than the jury’s April award of $420 million. 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. Earlier this year, a jury found in its favor in allegations that Papaya used bots to defraud human players in its human-only multiplayer games. Skillz’s lawsuit had similar allegations to the Skillz case against Avia Games, where Skillz won a civil lawsuit earlier. In that previous case, Skillz won a $42 million judgment against Avia Games, which was found to have copied Skillz’s IP for skill-based games against other human players. Ultimately, Skillz settled that lawsuit for $80 million. The actual allegation in front of the jury this time was a federal false advertising claim. The jury ruled on that matter. “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, in a statement today. “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.” In a statement, Papaya Gaming said, “We are disappointed with the outcome and are pursuing all available options, including appeal. Papaya remains committed to continuing to lead and grow the mobile gaming industry with integrity and transparency, delivering exciting skill-based fair competition to our players.” The judge, Denise Cote, took the advisory parts of the jury’s decision and decided to increase the total award based on that. In the case against Avia, Skillz also alleged that Avia copied its intellectual property. In the Papaya case, Skillz only charged that Papaya deceived players by using bots. In court, Skillz testified it estimated the damage was $4.5 billion in amounts stolen from tournaments. He noted Skillz raised almost $2 billion in capital in an IPO and other money raised, but the stock fell to as low as $40 million in value. In an earlier interview, Paradise said his first wind of something wrong was that Papaya was outbidding Skillz on all its advertising campaigns, even though it was a brand new company in the industry that Skillz had pioneered. “We studied their products,” Paradise said. “We paid a third-party market research company to run blind company testing. That’s when we learned they were running bots.” While Papaya is based in Israel, Skillz found many of its customers were in the U.S. That’s why it sued in New York. “It’s been a five year path to get here,” Paradise said, regarding the first lawsuit that started with Avia. He added, “I’ve never sued another company in my life” until the bot-related lawsuits. Skillz has also sued Voodoo. 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. Skillz said an 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 Skillz 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. The post Skillz (now Firy) wins $719M judgment against Papaya Gaming in largest false advertising award in history appeared fir

Jul 28, 2026 - 23:33

Skillz (now Firy) wins $719M judgment against Papaya Gaming in largest false advertising award in history

Firy, formerly known as Skillz, won a $719 million judgment against Papaya Gaming in its long-running false advertising case.

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 $719 million in disgorgement of Papaya’s unjust profits to FIRY’s wholly owned subsidiary, Skillz Platform Inc., plus an award of certain attorney’s fees and costs, nearly $300 million more than the jury’s April award of $420 million.

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.

Earlier this year, a jury found in its favor in allegations that Papaya used bots to defraud human players in its human-only multiplayer games.

Skillz’s lawsuit had similar allegations to the Skillz case against Avia Games, where Skillz won a civil lawsuit earlier. In that previous case, Skillz won a $42 million judgment against Avia Games, which was found to have copied Skillz’s IP for skill-based games against other human players. Ultimately, Skillz settled that lawsuit for $80 million.

The actual allegation in front of the jury this time was a federal false advertising claim. The jury ruled on that matter.

“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, in a statement today. “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.”

In a statement, Papaya Gaming said, “We are disappointed with the outcome and are pursuing all available options, including appeal. Papaya remains committed to continuing to lead and grow the mobile gaming industry with integrity and transparency, delivering exciting skill-based fair competition to our players.”

The judge, Denise Cote, took the advisory parts of the jury’s decision and decided to increase the total award based on that.

In the case against Avia, Skillz also alleged that Avia copied its intellectual property. In the Papaya case, Skillz only charged that Papaya deceived players by using bots.

In court, Skillz testified it estimated the damage was $4.5 billion in amounts stolen from tournaments.

He noted Skillz raised almost $2 billion in capital in an IPO and other money raised, but the stock fell to as low as $40 million in value.

In an earlier interview, Paradise said his first wind of something wrong was that Papaya was outbidding Skillz on all its advertising campaigns, even though it was a brand new company in the industry that Skillz had pioneered.

“We studied their products,” Paradise said. “We paid a third-party market research company to run blind company testing. That’s when we learned they were running bots.”

While Papaya is based in Israel, Skillz found many of its customers were in the U.S. That’s why it sued in New York.

“It’s been a five year path to get here,” Paradise said, regarding the first lawsuit that started with Avia. He added, “I’ve never sued another company in my life” until the bot-related lawsuits.

Skillz has also sued Voodoo.

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.

Skillz said an 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 Skillz 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.

The post Skillz (now Firy) wins $719M judgment against Papaya Gaming in largest false advertising award in history appeared first on GamesBeat.

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