SAN FRANCISCO, May 10, 2021 (GLOBE NEWSWIRE) – Hagens Berman calls on Skillz Inc. (NYSE: SKLZ) Investors with significant losses can file their losses now. A class action lawsuit for securities fraud is pending and certain investors may have valuable claims.
School lesson: Dec. Dec. 16, 2020 – Apr. 19, 2021
Deadline of the main plaintiff: July 7, 2021
Contact an attorney now: [email protected]
Security Fraud Class Lawsuit by Skillz, Inc. (NYSE: SKLZ):
Over the past several months, Skillz and senior management have repeatedly touted the company’s revenue growth and guidance to support its valuation.
The complaint alleges that defendants misled investors with this and other statements by failing to mention that (1) three of the company’s games, which were responsible for much of Skillz’s revenue, had declined significantly and (2) the company’s revenue recognition policies misrepresented the company’s actual 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 revenue from three games that account for 88% of Skillz’s total revenue (Blitz, Solitaire Cube, Blackout Bingo)) and the company’s growth forecasts effectively gutted.
Eagle Eye Research next released a report on April 18, 2021 claiming that Skillz’s revenue recognition practices were “like a tour where the company is effectively giving its customers money for SKLZ and capturing revenue from it, meaning no net economy generating profits . “Eagle Eye concluded that” actual cash receipts are less than half of what management presents to investors. “
These events caused the price of Skillz shares to plummet.
“We’re focusing on investor losses and proving that Skillz is involved in fraudulent bookkeeping and financial reporting,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are a Skillz investor and are experiencing significant losses or have knowledge that may aid the company’s investigation, click here to discuss your legal rights with Hagens Berman.
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Whistleblower: Individuals with nonpublic information about Skillz should review their options to help with the investigation or to use the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Further information is available from Reed Kathrein at 844-916-0895 or send an email to [email protected]
About Hagens Berman
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Reed Kathrein, 844-916-0895