SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of FuboTV, Inc. (NYSE: FUBO) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between March 23, 2020 and January 4, 2021. FuboTV is a multichannel video programming distributor ("vMVPD"), offering subscribers access to thousands of live sporting events and news and entertainment content.
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FuboTV, Inc. (FUBO) Misled Shareholders About Multiple Facets of Its Business Operations and Performance Metrics
According to the complaint, during the class period, defendants made false and misleading statements regarding Fubo's business operations and performance metrics. Specifically, defendants made false and/or misleading statements and failed to disclose to investors that: (i) FuboTV's growth in subscriber and profitability were unsustainable past the seasonal surge in subscription levels; (ii) FuboTV's offering of products was subject to undisclosed cost escalations; (iii) FuboTV could not successfully compete and perform as sports book operators and could not capitalize on its only sports wagering opportunity; (iv) FuboTV's data inventory was not differentiated to allow FuboTV to achieve long-term advertising goals and forecasts; (v) FuboTV's valuation was overstated in light of its total revenue and subscription levels; (vi) the acquisition of Balto Sport did not provide the related synergies or internal expertise, and did not expand the Company's addressable market into online sports wagering.
Between December 23, 2020 and January 4, 2021, FuboTV experienced a massive decline in its stock price when: (i) Lightshed Partners' criticized FuboTV's plan to achieve success with sports betting; (ii) multiple analysts downgraded FuboTV stock; (iii) Kerrisdale Capital issued a scathing report, which dismantled all aspects of FuboTV's business model and exposed the Company's flawed strategy as "structurally unprofitable; and (iv) Motley Fool reported that FuboTV is "nowhere near close to turning a profit" as "direct costs of delivering its service are higher than revenue." In all, FuboTV stock declined 54% to close at $24.24 on January 4, 2021.
If you purchased shares of FuboTV Inc. (FUBO) between March 23, 2020 and January 4, 2021, you have until April 19, 2021, to ask the court to appoint you lead plaintiff for the class.
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