The legal case against Fubo, a New York-listed business, has been filed at the Southern District of New York. This case represents investors who bought or acquired common stock of Fubo from March 23, 2020, to January 4, 2021.
The class action period includes the time when Fubo acquired Balto Sports, a daily fantasy sports supplier, in December 2020. Fubo’s co-founder and CEO, David Gandler, stated that the company views the online wagering space as complementary to its sports-first live TV streaming platform.
Leading the legal action is Wolf Haldenstein Adler Freeman & Herz LLP. They reference claims made by Richard Greenfield, an analyst at Lightshed Partners, who stated in December that Fubo’s chances of succeeding in sports betting were purely fantasy. Lightshed also noted that Fubo may be the most compelling short they have ever identified in their analyst career.
According to Wolf Haldenstein, Fubo made false or misleading statements during the class period. These statements relate to the sustainability of subscriber growth, profitability, and the likelihood of cost escalation for the company. For more details, read the full story on InnovateChange North America.
