INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of FuboTV, Inc. (FUBO) Investors

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased FuboTV, Inc. (“Fubo” or the “Company”) (NYSE: FUBO) common stock between March 23, 2020 and January 4, 2021, inclusive (the “Class Period”). Fubo investors have until April 19, 2021 to file a lead plaintiff motion.

Investors suffering losses on their Fubo investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].

On December 30, 2020, Kerrisdale Capital published a report titled “fuboTV Inc. (FUBO), Requiem for a Stream,” which criticized Fubo’s core subscription business as “structurally unprofitable” due to “high variable content costs with contracted escalators.” The report also agreed with other analysts who stated that Fubo’s valuation was “absurd,” and characterized Fubo’s acquisition of Balto Sports as a “foolish” attempt to enter the “already highly competitive space [of sport wagering].”

On this news, Fubo stock price fell $9.70 per share, or 25.72%, to close at $28.00 per share on December 31, 2020, thereby injuring investors.

On January 4, 2021, Motley Fool published an article stating that the Company is “nowhere close to turning a profit” as “direct costs of delivering its service are higher than revenue.” The article also concluded that “fuboTV's adjusted contribution margin is a meaningless number. It’s a function of how quickly the company is gaining subscribers, not a representation of profitability. The fact that the company reports such a misleading metric is a huge red flag.”

On this news, Fubo stock price fell $3.99 per share, or 14%, to close at $24.24 on January 4, 2021, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) Fubo’s growth in subscriber and profitability was unsustainable past the seasonal surge in subscription levels; (2) Fubo’s offering of products was subject to undisclosed cost escalations; (3) Fubo could not successfully compete and perform as sports book operator and could not capitalize on its online sports wagering opportunity; (4) Fubo’s data and inventory was not differentiated to allow Fubo to achieve its long-term advertising growth and forecasts; (5) Fubo’s valuation was overstated in light of its total revenue and subscription levels; and (6) the acquisition of Balto Sports did not provide the stated synergies and internal expertise, and did not expand the Company’s addressable market into sports wagering.

If you purchased Fubo common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210223005300/en/