San Francisco, Calif .– (Newsfile Corp. – June 11, 2021) – Hagens Berman urges Skillz Inc. (NYSE: SKLZ) investors with significant losses to file their losses now. A class action lawsuit for securities fraud is pending and certain investors may have valuable claims.
Course period: December 16, 2020 – April 19, 2021
Lead plaintiff deadline: July 7, 2021
Contact an attorney now: SKLZ@hbsslaw.com
Skillz, Inc. (NYSE: SKLZ) Securities Fraud Class Lawsuit:
Over the past several months, Skillz and senior management have repeatedly touted the company’s revenue growth and projections in support of its valuation.
The lawsuit alleges that with these and other statements, defendants misled investors by failing to state that (1) three of the company’s games, which are responsible for much of Skillz’s revenue, have declined significantly, and (2) revenue recognition policies misrepresented the company’s true financial position.
The defendants’ statements were first seriously challenged on March 8, 2021, when analyst Wolfpack Research released a scathing report accusing Skillz of hiding that revenue from three games accounted for 88% of Skillz’s total revenue (Blitz, Solitaire Cube, Blackout Bingo). ) dropped the company’s growth projections significantly, effectively wiping them out.
Next, on April 18, 2021, Eagle Eye Research released a report claiming that Skillz’s revenue recognition practices were “like a round-tripping where the company is effectively providing money to its customers for SKLZ and realizing revenue from it, ie no net economy generated “. Profits. “Eagle Eye concluded that” actual cash receipts are less than half of what management presents to investors. “
These events caused the Skillz share price to plummet.
“We’re focusing on investor losses and proving that Skillz is involved in fraudulent bookkeeping and financial reporting,” said Reed Kathrein, who led the Hagens Berman partner investigation.
The story goes on
If you are a Skillz investor and you are experiencing significant losses or have knowledge that may aid the company’s investigation, click here to discuss your statutory rights with Hagens Berman.
Whistleblower: Individuals with nonpublic information about Skillz should consider their options to help with the investigation or use the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards totaling up to 30 percent for each successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or send an email to SKLZ@hbsslaw.com.
# # #
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities across the country and over eighty attorneys. The firm represents investors, whistleblowers, employees and consumers in complex legal disputes. You can find out more about the firm and its successes at hbsslaw.com. For the latest news, visit our newsroom or follow us on Twitter @classactionlaw.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/87262