Lead Plaintiff Deadline: 04/19/2021
SUMMARY OF CASE:
A securities class action has been filed against FuboTV Inc. (FUBO) on behalf all persons other who purchased common shares of Fubo stock between March 23, 2020 through January 4, 2021. This case has been filed in the USDC – S.D.N.Y.
The Complaint alleges that during the Class Period, Defendants disseminated false and misleading statements that misrepresented Fubo’s financial health and its operating condition. These misleading statements included representations relating to a variety of Fubo’s business operations and performance metrics, including, among others, Fubo’s ability to grow subscription levels and future profitability, seasonality factors, cost escalations and potentially shrinking addressable market, ability to attract and generate advertising revenue, the Company’s valuation, and its prospects of entering the arena of online sports wagering. For example, one of the Company’s unrealistic promises included courageous claims of the Company’s plans to scale its sport wagering business by, among other things, acquiring Balto Sports, which significantly inflated the price of Fubo securities, and also created a false basis for its valuation and revenue projections. In reality, the Company’s prospects of scaling the sports wagering business was far from realistic given its size and market share, a fact that investors were never apprised of. As some analysts later described Fubo’s strategy, it amounted to “putting a lipstick on a pig.”
Investors learned the truth gradually through a series of research reports beginning on December 23, 2020. Those reports revealed, among others things, that (i) Fubo’s growth in subscriber and profitability was unsustainable past the one-time seasonal surge; (ii) Fubo’s offering of products would be subject to cost escalation; (iii) Fubo could not successfully compete and perform as sports book operator and could not capitalize on its online sports wagering opportunity; (iv) Fubo’s data and inventory was not differentiated to allow Fubo to achieve its long-term advertising growth goals; (v) Fubo’s valuation was overstated in light of its total revenue and subscription levels; and (vi) the acquisition of Balto Sports did not provide the stated synergies and internal expertise, and did not expand the Company’s addressable market into sports wagering.
Upon the publication of the research reports, the price of Fubo securities declined 54% from a close of $52.59 on December 23, 2020 to a close of $24.24 on January 4, 2021. As a result of Fubo’s wrongful acts and omissions, and the precipitous decline in the market value of Fubo’s common shares, Plaintiffs and other Class members have suffered significant losses and damages.