Kessler Topaz Meltzer & Check, LLP Reminds Investors of Deadline for Securities Fraud Class Action Lawsuit Filed Against Skillz Inc.
The law firm of Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed in the United States District Court for the Northern District of California against Skillz Inc. (NYSE: SKLZ) (“Skillz”) f/k/a Flying Eagle Acquisition Corp. (“FEAC”) on behalf of those who purchased or acquired Skillz securities between December 16, 2020 and April 19, 2021, inclusive (the “Class Period”).
Investor Deadline Reminder: Investors who purchased or acquired Skillz securities during the Class Period may, no later than July 7, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation 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; via e-mail at firstname.lastname@example.org; or click https://www.ktmc.com/skillz-class-action-lawsuit?utm_source=PR&utm ...
Skillz is an internet tech company that provides a proprietary gaming platform for mobile gaming users and developers. FEAC was formed as a special purpose acquisition company in early January 2020 by its sponsor Eagle Equity Partners II, LLC, led and controlled by defendant, Harry Sloan, a member of Skillz’s Board of Directors and former President and Chairman of FEAC. Within eight months, FEAC and Mr. Sloan had secured $158 million in private placement commitments in connection with a business combination between FEAC and its target – Skillz. After a definitive merger agreement and subscription agreements were executed, on September 8, 2020, FEAC, through its Board of Directors, filed a merger proxy statement and prospectus on a Registration Form S-4.
The Class Period commences on December 16, 2020, when Skillz issued a press release, which was attached to Skillz’s Form 8-K filed on December 17, 2020, entitled “SKILLZ BECOMES FIRST PUBLICLY TRADED MOBILE ESPORTS PLATFORM.” Throughout the Class 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 publicly released which described, among other things, how: (1) third-party app data shows installations of the three games responsible for 88% of Skillz’s revenues (21 Blitz, Solitaire Cube, and Blackout Bingo) all declined substantially; (2) Skillz did not disclose the substantial decrease in the popularity of these three games (despite their material importance to its growth trajectory); (3) Skillz is not taken seriously by gaming industry players; (4) Skillz has a long history of boasting about “big partnerships” which have amounted to nothing of value; and (5) Andrew Paradise, co-founder of Skillz and its Chief Executive Officer, does not have the relevant experience that had been expressed. Following this news, shares of Skillz fell by 10.9% to close at $24.45. This disclosure represented approximately $762 million loss of investor value.