Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Skillz Inc. f/k/a Flying Eagle Acquisition Corp. (SKLZ)
LOS ANGELES, July 1, 2021 /PRNewswire/ -- Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming July 7, 2021 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Skillz Inc. f/k/a Flying Eagle Acquisition Corp. ("Skillz" or the "Company") (NYSE: SKLZ) securities between December 16, 2020 and April 19, 2021, inclusive (the "Class Period").
If you suffered a loss on your Skillz investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/skillz-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
On March 8, 2021, Wolfpack Research published a report about the Company alleging that the growth speculations from Skillz and its insiders were "entirely unrealistic" and that Skillz's top three games, representing 88% of Skillz's revenue, reported a decline in downloads since the third quarter of 2020.
On this news, Skillz's stock price fell $3.00 per share, or 10.9%, to close at $24.45, thereby injuring investors.
On April 19, 2021, Eagle Eye Research posted an anonymous report on Twitter in which it claimed that, through the use of providing users with incentive Bonus Payments, "the company likely recognizes substantial non-cash revenue and [] cash revenues may be less than ½ of GAAP revenue."
On this news, Skillz's stock price fell $1.00 per share, or 6.61%, to close at $14.11 on April 19, 2021. Shares continued to decline to close at $12.55 on April 20, 2021, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) three games responsible for a majority of Skillz's revenues had declined substantially; (2) Skillz's revenue recognition policy misrepresented the financial condition of the company; (3) unrealistic market growth, specifically in the Android market; and (4) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Skillz securities during the Class Period, you may move the Court no later than July 7, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE Glancy Prongay & Murray LLP
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