A shareholder class action lawsuit has been filed against Skillz Inc. (NYSE: SKLZ), formerly known as Flying Eagle Acquisition Corp., on behalf of investors who purchased shares of the Company’s stock between December 16, 2020 and April 19, 2021, inclusive (the “Class Period”).
According to the complaint, on March 8, 2021, Wolfpack Research released a report titled, “SKLZ: It Takes Little Skill to see this SPACtacular Disaster Coming” (the “Wolfpack Report”). Among other things, the Wolfpack Report alleged (i) that the growth speculations that Skillz and its insiders had touted were “entirely unrealistic,” and (ii) that Skillz’s top three games, representing 88% of Skillz’s revenue, reported a decline in downloads since the third quarter of 2020.
Additionally, the Wolfpack Report allegedly revealed (i) that Skillz was not taken seriously by industry experts because Skillz’s platform is not robust enough to handle synchronous play and international matchmaking; (ii) that Skillz was banned from the Google Play Store, a major conduit for game developers; (iii) that Skillz has a history of boasting about future partnerships that either do not have tremendous value, or never amount to anything; and (iv) that the Company’s CEO was not as experienced as Skillz purported to claim, and in fact has been involved several failed businesses.
Following the release of the Wolfpack Report, shares of Skillz’s common stock declined $3.00 per share, or over 10% in value, to close on March 8, 2021 at $24.45 per share.
Skillz investors are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about the opportunity to actively participate in the action as a lead plaintiff representative.