Posted on: Feb 22, 2021, 11:57 am.
Last update on: February 22nd, 2021, 11:57 am.
A class action lawsuit has been filed against fuboTV in a federal court. Investors in the sports-centric streaming service claim executives misled them about the company's profitability and its competitiveness in sports betting.
David Gandler, co-founder of Fubo, was among the executives named in a class action lawsuit filed by investors alleging the company provided misleading information about various aspects of the company. (Image: Fubo)
The lawsuit, filed last Wednesday in the U.S. District Court for the southern borough of New York, is for people who purchased the company's stock between March 23, 2020 and January 4. Investors claim a number of reports that were released as of December 23rd highlight the shortcomings of the company. This caused the stock to jump from $ 52.29 that day to $ 24.24 on Jan. 4th. This corresponds to a loss in value of 54 percent.
The lawsuit lists not only the company but also members of the executive team. These include Co-Founder and CEO David Gandler, Executive Chairman Edgar Bronfman Jr. and CFO Simone Nardi. The damages sought by the plaintiffs include reimbursement of the depreciation suffered as well as other permissible damages.
According to a press release from the law firm Wolf Haldenstein Adler Freeman & Herz LLP, investors have until April 19 to join the lawsuit.