Sports streaming service operator FuboTV is the subject of a class action lawsuit in New York over claims it misled investors concerning its acquisition of Balto Sports and prospects of achieving success as an online sportsbook operator.
The case against the New York-listed business has been filed at the Southern District of New York on behalf of investors who purchased or otherwise acquired common stock of Fubo from 23 March 2020 to 4 January 2021.
The class action period includes the date when Fubo acquired daily fantasy sports supplier Balto Sports in December 2020. At the time, Fubo co-founder and CEO David Gandler said the operator sees the “online wagering space as complementary to our sports-first live TV streaming platform”.
Wolf Haldenstein Adler Freeman & Herz LLP, leading the action, cited Lightshed Partners analyst Richard Greenfield’s claims in December that Fubo’s chances of achieving success in sports betting were “pure fantasy”. Lightshed further observed that the company “[may be] the most compelling short we have ever identified in our career as analysts”.
Wolf Haldenstein said that during the class period Fubo made materially false or misleading statements pertaining to the sustainability of its growth in subscribers and profitability, and likelihood of cost escalation.
