SAN DIEGO, Nov. 12, 2021 (GLOBE NEWSWIRE) -- Johnson Fistel, LLP is investigating potential claims on behalf of Skillz Inc. ("Skillz" or the "Company") (NYSE: SKLZ) against certain of its officers and directors.
Recently a class action lawsuit was filed in federal court against the Company on behalf of purchasers of the securities of Skillz Inc from December 16, 2020 and April 19, 2021 (the "Class Period").
The filed complaint alleges that defendants made materially false and misleading statements and failed to disclose that: representations relating to certain of Skillz's business operations, performance metrics, and ultimate valuation, including, among others, Skillz's ability to attract new end-users, future profitability, the shrinking popularity of its hosted games that accounted for 88% of its revenue, and the Company's valuation. For example, one of the Company's objectively unrealistic promises included the unsupportable claim that the Company was valued at $3.5 billion, based on revenue projections over $550 million for 2022. However, the Company failed to inform investors that downloads of the games that account for a majority share of its revenue have declined since at least November 2020. In reality, the Company's prospects for attaining that revenue scale was far from realistic given its size, market share, reliance on third-party app stores, declining downloads of its most popular games, and, critically, the enormous amount of incentive Bonus Payments that Skillz routinely provides to its gamer customers, a fact that investors were misled about. These Bonus Payments are routinely provided to its customers, who are expected to use them for game entry fees, which, in turn, artificially inflates Skillz revenue.
If you are a current, long-term shareholder of Skillz Inc, holding shares before December 16, 2020, you may have standing to hold Skillz harmless from the alleged harm caused by the officers and directors of the Company by making them personally responsible. You may also be able to assist in reforming the Company's corporate governance to prevent future wrongdoing.
If you are interested in learning more about the investigation, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471. If emailing, please include a phone number.
Additionally, if you are a current, long-term shareholder of Skillz, holding shares before December 16, 2020, you can [Click here to join this action]. There is no cost or obligation to you.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson Fistel, LLP
Jim Baker, 619-814-4471