NEW YORK, May 11, 2021 /PRNewswire/ — Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of Skillz Inc. («Skillz» or the «Company») (NYSE: SKLZ) from December 20, 2020 through April 19, 2021 (the «Class Period»). The lawsuit filed in the United States District Court for the Northern District of California alleges violations of the Securities Exchange Act of 1934.
If you purchased Skillz securities, and/or would like to discuss your legal rights and options please visit Skillz Shareholder Class Action Lawsuit or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or Seidman@bernlieb.com
The complaint alleges that, during the Class Period, defendants disseminated false and misleading statements and omissions that materially misrepresented Skillz’s purported financial condition and prospects. These materially misleading statements and omissions included representations relating to certain of Skillz’s business operations, performance metrics and ultimate valuation, including, among other things, 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.
On March 8, 2021, Wolfpack Research released a report titled, «SKLZ: IT takes Little Skill to see this SPACtacular Disaster Coming» (the «Wolfpack Report»). The Wolfpack Report alleges that the growth speculations that Skillz and its insiders had touted were «entirely unrealistic» given the fact that Skillz’s top three games, representing 88% of Skillz’s revenue, reported a decline in downloads since the third quarter of 2020.
On this news, the price of Skillz stock plummeted 10.9% to close at $24.45, down $3 from the previous day.
Then, on April 19, 2021, Eagle Eye Research posted an anonymous report on Twitter in which it claimed that, through the use of providing users with incentive Bonus Payments, «the company likely recognizes substantial non-cash revenue and  cash revenues may be less than ½ of GAAP revenue.»
On this news, SKLZ shares declined 6.61%, or $1 to close at $14.11 on April 19, 2021. Shares further declined the next day to an all-time low of $12.55.
If you wish to serve as lead plaintiff, you must move the Court no later than July 7, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Skillz securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/skillzinc-sklz-shareholder-class-action-lawsuit-fraud-stock-397/apply/ or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or Seidman@bernlieb.com
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s «Plaintiffs’ Hot List» thirteen times and listed in The Legal 500 for ten consecutive years.
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