Skillz Inc.

Jedrzejczyk v. Skillz Inc., et al., No. 3:21-cv-3450 (N.D. Cal.)

Skillz provides a proprietary gaming platform for mobile gaming users and developers. Skillz connects players worldwide by hosting fee-based competitive eSports games on its platform. Skillz went public via Flying Eagle Acquisition Corp., a special purpose acquisition company (or SPAC)on December 16, 2020.

On March 8, 2021, analyst Wolfpack Research published a scathing report entitled “SKLZ: It Takes Little Skill to see this SPACtacular Disaster Coming.” In this report, Wolfpack alleged that Skillz and certain of its executives had lauded “entirely unrealistic” growth projections. Wolfpack further alleged that the three games Skillz relies on for approximately 88% of its revenue had begun to decline before Skillz went public. On this news, shares fell approximately 11%.

Then on April 19, 2021, analyst Eagle Eye Research posted an anonymous report on Twitter in which it asserted that through the use of providing users with incentive bonus payments, Skillz “likely recognized substantial non-cash revenue, and . . . cash revenue may be less than ½ of GAAP revenue.” On this news, Skillz shares fell another 6%.

Lead Plaintiff deadline
July 7, 2021
class period
December 16, 2020
April 19, 2021
Case Documents
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