FuboTV Inc. Class Action Lawsuit
- Company Name
- FuboTV Inc.
- Stock Symbol
- Class Period
- March 23, 2020 to January 4, 2021
- Motion Deadline
- April 19, 2021
- Southern District of New York
The FuboTV Inc. class action lawsuit charges FuboTV and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of FuboTV common shares between March 23, 2020 and January 4, 2021 (the “Class Period”). The FuboTV class action lawsuit was commenced on February 17, 2021 in the Southern District of New York and is captioned Said-Ibrahim v. FuboTV Inc., No. 21-cv-01412.
FuboTV is a multichannel video programming distributor, offering subscribers access to thousands of live sporting events as well as news and entertainment content. FuboTV’s platform allows customers to access content through streaming devices and on Smart TVs, mobile phones, tablets, and computers.
The FuboTV class action lawsuit alleges that, throughout the Class Period, defendants disseminated false and misleading statements that misrepresented FuboTV’s financial health and its operating condition. These misleading statements allegedly included representations relating to a variety of FuboTV’s business operations and performance metrics, including, among others, FuboTV’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, FuboTV’s valuation, and its prospects of entering the arena of online sports wagering. For example, one of FuboTV’s allegedly unrealistic promises included claims of FuboTV’s plans to scale its sports wagering business by, among other things, acquiring Balto Sports, which significantly inflated the price of FuboTV securities, and also created a false basis for its valuation and revenue projections.
Investors learned the truth gradually through a series of research reports beginning on December 23, 2020. Those reports revealed, among others things, that: (i) FuboTV’s growth in subscriber and profitability was unsustainable past the one-time seasonal surge; (ii) FuboTV’s offering of products would be subject to cost escalation; (iii) FuboTV could not successfully compete and perform as a sports book operator and could not capitalize on its online sports wagering opportunity; (iv) FuboTV’s data and inventory was not differentiated to allow FuboTV to achieve its long-term advertising growth goals; (v) FuboTV’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 FuboTV’s addressable market into sports wagering. Upon the publication of the research reports, the price of FuboTV securities declined 54% from December 23, 2020 to January 4, 2021.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased FuboTV common shares during the Class Period to seek appointment as lead plaintiff in the FuboTV class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the FuboTV class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the FuboTV class action lawsuit. An investor’s ability to share in any potential future recovery of the FuboTV class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the FuboTV class action lawsuit or have questions concerning your rights regarding the FuboTV class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the FuboTV class action lawsuit must be filed with the court no later than April 19, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.