Kessler Topaz Meltzer & Check, LLP alerts shareholders of securities class action lawsuit against Skillz Inc. (SKLZ)
RADNOR, Pennsylvania., June 26, 2021 / PRNewswire / – Law firm Kessler Topaz Meltzer & Check, LLP reminds investors of Skillz Inc. (NYSE: SKLZ) (“Skillz”) f / k / a Flying Eagle Acquisition Corp. (NYSE: FEAC) (“FEAC”) that a securities fraud class action lawsuit has been filed on behalf of those who have purchased or acquired Skillz securities Between December 16, 2020 and April 19, 2021, inclusive (the “Class Period”).
Reminder of the deadline for investors: investors who have bought or acquired Skillz securities during the Class Action Period may, not later than July 7, 2021, seek to be appointed as principal applicant representative of the group. For more information or to find out how to participate in this dispute, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; by e-mail to [email protected]; or Click on https://www.ktmc.com/skillz-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=skillz
Skillz is an internet technology company that provides a proprietary gaming platform for mobile game users and developers. FEAC was incorporated as an ad hoc acquisition company at the start January 2020 by its sponsor Eagle Equity Partners II, LLC, directed and controlled by the defendant, Harry sloan, member of the board of directors of Skillz and former president and chairman of FEAC. In eight months, FEAC and Mr. Sloan had obtained $ 158 million in private placement commitments as part of a business combination between FEAC and its target – Skillz. After signing a definitive merger agreement and subscription agreements, the September 8, 2020, FEAC, through its board of directors, has filed a proxy and a merger prospectus on an S-4 registration form.
The Recourse Period begins on December 16, 2020, when Skillz issued a press release, which was attached to Skillz’s Form 8-K filed on December 17, 2020, titled “SKILLZ BECOMES THE FIRST PUBLIC MOBILE ESPORTS PLATFORM”. Throughout the litigation period, Skillz touted its business prospects.
However, on March 8, 2021, a research report by Wolfpack Research titled “SKLZ: It Takes Little Skill to see this SPACtacular Disaster Coming” was released and described, among other things, how: (1) third-party application data shows installations of all three games responsible for 88% of Skillz’s revenue (21 Blitz, Solitaire Cube and Blackout Bingo) all declined significantly; (2) Skillz did not disclose the substantial decline in popularity of these three games (despite their material importance to its growth trajectory); (3) Skillz is not taken seriously by players in the gaming industry; (4) Skillz has long bragged about “great partnerships” that were of no value; and (5) André Paradis, co-founder of Skillz and its managing director, does not have the relevant experience that had been expressed. Following this news, Skillz shares fell 10.9% to close at $ 24.45. This disclosure represented approximately $ 762 million loss of value for the investor.
Then on April 19, 2021, an anonymous Twitter account named Eagle Eye Research, published a report on the short seller. The report stated: “[Skillz] never made a profit and we doubt he ever will. “The Eagle Eye report alleged that Skillz” recognized the revenue from the ‘virtual’ money he gave his customers to spend although none real money is generated in the process. ”Skillz shares fell 6.61% to close at $ 12.55 at April 19, 2021, losing about $ 254 million in value for the investor.
The complaint alleges that throughout the Class Period, the Defendants disseminated false and misleading statements and omissions which materially misrepresented Skillz’s purported financial condition and prospects. These misleading statements and omissions included statements relating to certain Skillz business transactions, performance measurements and a final evaluation, including, among others, Skillz’s ability to attract new end users, future profitability, declining popularity of its hosted games, which represented 88% of its turnover, and the valuation of Skillz.
Skillz investors can, not later than July 7, 2021, seek to be appointed as the principal representative of class claimants through Kessler Topaz Meltzer & Check, LLP or another lawyer, or may choose to do nothing and remain an absent member of the class. A principal plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be named the Principal Plaintiff, the Court must determine that the Class Member’s claim is typical of the claims of other Class Members, and that the Class Member will adequately represent the Class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as a principal applicant.
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country regarding securities fraud, breach of fiduciary duty, and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors from United States and all over the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and participate in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 route du Roi de Prussia
Radnor, Pennsylvania 19087
(844) 887-9500 (toll free)
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