NEW YORK, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, has filed a federal securities class action in the United States District Court Southern District of New York on behalf of its client and all similarly situated investors who purchased or otherwise acquired common stock of fuboTV, Inc. ("Fubo" or "Company") (NYSE: FUBO) from March 23, 2020 and January 4, 2021,inclusive (the "Class Period"). The class action alleges violations of the federal securities laws.
Fubo is a Florida Company headquartered in New York. Fubo is a multichannel video programming distributor (“vMVPD”), offering subscribers access to live sporting events as well as thousands of news and entertainment content. Fubo positions itself as a content distributor at the intersection of three “megatrends”: cord-cutting, connected TV advertising, and online sports wagering.
Fubo’s stock was trading at $52.59 on December 23, 2020 but after a series of reports and analysts questioning Fubo’s business operations and performance metrics, the price of Fubo securities declined precipitously to a close of $24.24 on January 4, 2021. Among other things, these reports questioned Fubo’s ability to grow subscription levels and future profitability, seasonality factors, cost escalations and shrinking addressable market, ability to attract and generate advertising revenue, the Company’s valuation, and its business prospects of scaling its online sports wagering opportunity.
The Complaint alleges Fubo made false and misleading statements to the public throughout the Class Period and failed to disclose material adverse facts about the Company’s business, operational, and financial prospects. Specifically, Defendants made false and/or misleading statements concerning: (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 Sport did not provide the stated synergies and internal expertise, and did not expand the Company’s addressable market into sports wagering; and (vii) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times
If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than April 19, 2021. Any member of the proposed Class may move to serve as the Lead Plaintiff through counsel of their choice.
If you have suffered a net loss from investment in Fubo’s common stock from March 23, 2020 and January 4, 2021, you may obtain additional information about this lawsuit and your ability to become a Lead Plaintiff, by contacting Andrea Farah at afarah@lowey.com or by calling 914-733-7256. The class action is titled Said-Ibrahim et al. v. FuboTV Inc. et al., No. 1:21-cv-01412 (S.D.N.Y.).
Contact
Lowey Dannenberg P.C.
44 South Broadway, Suite 1100
White Plains, NY 10601
Tel: (914) 733-7256
Email: afarah@lowey.com