Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces the Filing of a Securities Class Action on Behalf of FuboTV, Inc. (FUBO) Investors

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired FuboTV, Inc. (“Fubo” or the “Company”) (NYSE: FUBO) common stock between March 23, 2020 and January 4, 2021, inclusive (the “Class Period”). Fubo investors have until April 19, 2021 to file a lead plaintiff motion.

If you suffered a loss on your Fubo 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/fubotv-inc. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [e-mail] to learn more about your rights.

On December 30, 2020, Kerrisdale Capital published a report titled “fuboTV Inc. (FUBO), Requiem for a Stream,” which criticized Fubo’s core subscription business as “structurally unprofitable” due to “high variable content costs with contracted escalators.” The report also agreed with other analysts who stated that Fubo’s valuation was “absurd,” and characterized Fubo’s acquisition of Balto Sports as a “foolish” attempt to enter the “already highly competitive space [of sport wagering].”

On this news, Fubo stock price fell $9.70 per share, or 25.72%, to close at $28.00 per share on December 31, 2020, thereby injuring investors.

On January 4, 2021, Motley Fool published an article stating that the Company is “nowhere close to turning a profit” as “direct costs of delivering its service are higher than revenue.” The article also concluded that “fuboTV's adjusted contribution margin is a meaningless number. It’s a function of how quickly the company is gaining subscribers, not a representation of profitability. The fact that the company reports such a misleading metric is a huge red flag.”

On this news, Fubo stock price fell $3.99 per share, or 14%, to close at $24.24 on January 4, 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: (1) Fubo’s growth in subscriber and profitability was unsustainable past the seasonal surge in subscription levels; (2) Fubo’s offering of products was subject to undisclosed cost escalations; (3) Fubo could not successfully compete and perform as sports book operator and could not capitalize on its online sports wagering opportunity; (4) Fubo’s data and inventory was not differentiated to allow Fubo to achieve its long-term advertising growth and forecasts; (5) Fubo’s valuation was overstated in light of its total revenue and subscription levels; and (6) the acquisition of Balto Sport did not provide the stated synergies and internal expertise, and did not expand the Company’s addressable market into sports wagering.

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If you purchased or otherwise acquired Fubo common stock during the Class Period, you may move the Court no later than April 19, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class 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. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, 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 [e-mail], 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.

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