fuboTV investors may receive additional information about the case by clicking the link "Submit Your Information" above.
Fubo operates a live TV streaming platform for live sports events, news, and entertainment content in Europe and the United States. Its platform allows customers to access content through streaming devices, as well as on SmartTVs, mobile phones, tablets, and computers.
The Class Period commences on March 23, 2020, when Fubo issued a press release entitled Facebank Group And FuboTV Announce Definitive Merger Agreement - Combined Company To Be Named FuboTV, Inc., which stated, in relevant part, “[t]he business combination of FaceBank Group and fuboTV accelerates our ability to build a category defining company and supports our goal to provide consumers with a technology-driven cable TV replacement service for the whole family. With our growing businesses in the U.S., and recent beta launches in Canada and Europe, fuboTV is well-positioned to achieve its goal of becoming a world-leading live TV streaming platform for premium sports, news and entertainment content.”
Throughout the Class Period, the 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, Fubo’s valuation, and its prospects of entering the arena of online sports wagering.
Investors learned the truth about Fubo’s financial health and operating condition gradually through a series of research reports beginning on December 23, 2020. The disclosures culminated on January 4, 2021, when Motley Fool published an article titled There’s a Big Problem with FuboTV Stock with a subtitle “The wildly unprofitable streamer tries to put lipstick on a pig with a creative metric.” The Motley Fool article questioned Fubo’s business model, stating that Fubo is “nowhere close to turning a profit” as “direct costs of delivering its service are higher than revenue.” The article noted that “subscriber related expenses, which include affiliate distribution rights and cloud computing charges, among other things, were slightly higher than revenue in the third quarter.” Following this news, Fubo’s shares declined $3.99, or 14%, to close at $24.24 on January 4, 2021.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and failed to disclose to investors that: (i) Fubo’s growth in subscriber and profitability were unsustainable past the seasonal surge in subscription levels; (ii) Fubo’s offering of products was subject to undisclosed cost escalations; (iii) Fubo could not successfully compete and perform as a sports book operator and could not capitalize on its only sports wagering opportunity; (iv) Fubo’s data and inventory was not differentiated to allow Fubo to achieve long-term advertising growth goals and forecasts; (v) Fubo’s valuation was overstated in light of its total revenue and subscription levels; (vi) the acquisition of Balto Sport did not provide the stated synergies, internal expertise, and did not expand Fubo’s addressable market into online sports wagering; and (vii) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times.
If you are a member of the class described above, you may no later than April 19, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll-free at (844) 887-9500; or via e-mail at email@example.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.