Notice of Lead Plaintiff Deadline for Shareholders in the Skillz Inc. f/k/a Flying Eagle Acquisition Corp. Class Action Lawsuit

SAN DIEGO–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP announces that in December a class action lawsuit was filed in Northern California on behalf of buyers of Skillz Inc. f / k / a securities of Flying Eagle Acquisition Corp. (NYSE: SKLZ) was submitted April 16, 2020 and April 19, 2021 (the “Class Period”). The case is headed Jedrzejczyk v Skillz Inc. (F / k / a Flying Eagle Acquisition Corp., No. 21-cv-03450) and accuses Skillz and some of its executives of violating the Securities Exchange Act of 1934.

The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Skillz securities during the class period to seek appointment as the lead plaintiff in the Skillz class action. A lead plaintiff is generally the applicant with the greatest financial interest in the relief sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all other class members directing the Skillz class action. The lead plaintiff can choose a law firm of their choice to bring the Skillz class action lawsuit. An investor’s ability to participate in a possible future recovery of the Skillz lawsuit does not depend on whether they are the lead plaintiff. If you would like to stand as the lead plaintiff in the Skillz class action or have any questions about your rights in relation to the Skillz class action, please include your information here or contact attorney JC Sanchez of Robbins Geller at 800 / 449-4900 or 619 / 231-1058 or by email to [email protected]. Lead plaintiff motions for Skillz’s class action lawsuit must be filed with the court by July 7, 2021 at the latest.

Skillz offers a proprietary gaming platform for mobile game users and developers. Skillz connects players worldwide by hosting paid competitive esports games on its platform. Flying Eagle Acquisition Corp. (“FEAC”) was formed as a special purpose vehicle (SPAC) in early January 2020 by its sponsor, Eagle Equity Partners II, LLC, which is managed and controlled by the Defendant Harry Sloan. Within eight months, FEAC and Sloan received $ 158 million in private placement commitments related to a business combination between FEAC and its target – Skillz. FEAC and Skillz completed their merger on December 16, 2020 and valued Skillz at $ 3.5 billion.

The Skillz class action alleges that throughout the classroom, Defendants made materially misleading statements and omissions, including representations regarding certain Skillz business processes, performance metrics, and final evaluation, including but not limited to: (i) Skillz’s ability to attracting new end users, (ii) future profitability, (iii) the declining popularity of Skillz-hosted games, which accounted for 88% of sales, and (iv) the valuation of Skillz. The Skillz class action lawsuit also alleges that one of Skillz’s objectively unrealistic promises was the unbearable claim that Skillz was worth $ 3.5 billion based on sales projections of more than $ 550 million for 2022. Skillz allegedly failed to inform investors about game downloading, however, and much of Skillz’s revenue has been in decline since at least November 2020.

On March 8, 2021, Wolfpack Research published a report entitled “SKLZ: It Takes Little Skill to See This Spectacular Catastrophe” claiming that the growth speculation touted by Skillz and its insiders is “totally unrealistic”. The Wolfpack Research report claimed, among other things, that the three games Skillz relies on dropped 88% of its sales before Skillz went public. The downloads of these games all fell 52% (21 Blitz), 40% (Solitaire Cube) and 20% (Blackout Bingo) in the fourth quarter of 2020. The Wolfpack Research report concluded that Skillz buried that decline in downloads and revenue into its claims, while continuing to tout massive future revenue growth. The Wolfpack Research report goes on to say that Skillz has historically boasted of future partnerships that either don’t have tremendous value or never matter. In the news, Skillz stock fell nearly 11%.

Then, on April 19, 2021, Eagle Eye Research posted an anonymous report on Twitter alleging that Skillz was likely to generate significant non-cash income by providing bonus payments to users. . . Cash income can be less than half of GAAP income. “In the news, Skillz stock fell another 6%, causing further damage to investors.

Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC task force to protect investors in blank check companies and to remedy corporate errors. The SPAC Task Force consists of experienced litigation attorneys, investigators and forensic accountants and aims to eradicate and prosecute fraud on behalf of injured SPAC investors. The rise in blank check funding poses unique risks for investors. Robbins Geller Rudman & Dowd LLP’s SPAC Task Force is at the forefront of ensuring integrity, honesty and equity in this rapidly evolving area of ​​investment.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms serving investors in class action lawsuits. With 200 attorneys in 9 law firms, Robbins Geller has filed many of the largest securities lawsuits in history. ISS Securities Class Action Services has ranked Robbins Geller as one of the world’s top law firms since 2010. Billions for investors last year, more than double the amount collected by another claimant firm. Robbins Geller’s lawyers helped shape securities laws and reclaimed tens of billions of dollars on behalf of injured victims. In addition to securing financial repayments for duped investors, Robbins Geller specializes in implementing corporate governance reforms that will help improve financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by the courts, professional associations and the media as the leading attorneys in the industry. Please visit http://www.rgrdlaw.com for more information.

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