LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming July 7, 2021 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased 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 are a shareholder who suffered a loss, click here to participate.
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 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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