- FuboTV may not be getting a sportsbook any time soon as the company now has a lawsuit against them for reporting false projections to investors.
- Anyone that purchased stock in fuboTV from March 2020 – January 2021 could be eligible to be a part of the plaintiff list of the lawsuit.
- fuboTV promised their investors huge returns on their investments through company growth that is now said to have been grossly exaggerated.
NEW YORK – FuboTV is being hit with a class-action lawsuit based on claims of the company’s thriving business projections including the viability of a future sportsbook endeavor.
Anyone that invested in fuboTV stock from March 23, 2020, to January 4, 2021, is entitled to add their name to the list as a plaintiff as this was the period for which the company is said to have misled the public with its positive trajectory.
To be included, the courts are giving stakeholders until April 19 to apply to be a part of the case. In doing so, any financial compensation won for plaintiffs will be split among those that have put their name on the list.
The Case Against FuboTV
February 17 was the day that all of this began for fuboTV. Reports were filed against the business saying that fuboTV had falsely publicized numbers that misled individuals to purchase their stock.
Some of the allegations being made against the business include fuboTV telling their investors of their future profits through subscription growth as well as being able to find ways to gain revenue through advertising. Advertising would then open up more customers to subscribe to their platform.
All of these profit reports, from what could be accumulated and overall total revenues, were grossly exaggerated per the lawsuit by those who invested in the company.
In fact, there has been data gathered which suggests there is no way that the business could sustain running a sportsbook that was in their plan for the future. Outside of being able to launch one, they could not handle the competition of other mobile sportsbooks and would eventually go under research claims.
While fuboTV bought Balto Sports to help them with their legal sports betting sector as an operator, the knowledge that Balto was supposed to bring to the table has not yet shown results of getting fuboTV any closer to a sportsbook opening. The company has not yet commented on these allegations.
But, the news of the lawsuit has seen their stock price drop considerably. There has been a 54% drop in fuboTV stock prices, going from $52.59 on December 23 to $24.24 twelve days later on January 4, 2021.
Brager Eagel & Squire, P.C. will be representing the plaintiffs in this case. Anyone that wants more information has any information, or would like to be a part of this class action lawsuit should contact the firm.
It looks like a fuboTV owned sportsbook may not be in the cards after all but their stock price has climbed back up to $41.94 as of close on February 19.
Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.