SAN FRANCISCO, May 12, 2021 Hagens Berman urges Skillz Inc. (NYSE: SKLZ) investors with significant losses to submit your losses now. A securities fraud class action is pending and certain investors may have valuable claims.
Class Period: Dec. 16, 2020 – Apr. 19, 2021
Lead Plaintiff Deadline: July 7, 2021
Skillz, Inc. (NYSE: SKLZ) Securities Fraud Class Action:
In past months, Skillz and senior management repeatedly touted the company’s revenue growth and projections to support its valuation.
The complaint alleges Defendants misled investors with these and other statements because they concealed that (1) three of the company’s games responsible for a majority of Skillz’s revenues had substantially declined and (2) the company’s revenue recognition policy misrepresented the company’s actual financial condition.
Defendants’ statements were first brought into serious question on Mar. 8, 2021, when analyst Wolfpack Research published a scathing report, accusing Skillz of concealing that revenues from three games responsible for 88% of Skillz’s total revenues (Blitz, Solitaire Cube, Blackout Bingo) substantially declined and effectively gutted the company’s growth projections.
Next, on Apr. 18, 2021, Eagle Eye Research published a report claiming Skillz’s revenue recognition practices were “like round-tripping where the company is effectively giving its customers money to spend on SKLZ and recognizing revenue from it, i.e. generating no net economic profits.” Eagle Eye concluded “that true cash revenue is less than ½ of what management portrays to investors.”
These events sent the price of Skillz shares sharply lower.
“We’re focused on investors’ losses and proving Skillz engaged in fraudulent accounting and financial reporting,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Skillz investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Skillz should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
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