BUMP

Class action lawsuit going on right now against Skillz, on behalf of stockolders.

A settlement was reached in 2025 for $10,000,000, but it hasn't been finalized yet.

https://www.flyingeaglestockholderslitigation.com/

Here's what it was about:

On March 10, 2020, Flying Eagle, a special purpose acquisition company formed for the purpose of effecting a merger or other business combination, completed its initial public offering of 69 million units, with each unit consisting of one share of Flying Eagle Class A common stock and one-fourth of a warrant with an exercise price of $11.50 per share.

On September 1, 2020, Flying Eagle, FEAC Merger Sub Inc. (a wholly owned subsidiary of Flying Eagle), Legacy Skillz, and Andrew Paradise, in his capacity as representative of the stockholders of Legacy Skillz, entered into an Agreement and Plan of Merger (such agreement with any amendments thereto, the “Merger Agreement”), pursuant to which Legacy Skillz would be acquired by Flying Eagle (the “Merger”).

On November 30, 2020, Flying Eagle filed a definitive proxy statement pursuant to Section 14(a) of the Securities Exchange Act of 1934 with the United States Securities and Exchange Commission relating to the Merger (such proxy statement together with any preliminary proxy filings, as well as any amendments or supplements thereto, the “Registration Statement”). The Registration Statement set the deadline for Flying Eagle stockholders to request to redeem their stock as December 14, 2020.

On December 16, 2020, a majority of Flying Eagle stockholders voted to approve the Merger; the Merger closed the same day, and Flying Eagle changed its name to Skillz Inc. (“Skillz”). Flying Eagle stockholders redeemed 2,140 of their shares.

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On April 12, 2023, Plaintiff Darcy Lien filed his Verified Amended Class Action Complaint (the “Amended Complaint”) alleging that Defendants breached their fiduciary duties owed to Flying Eagle stockholders by pursuing the Merger with the purpose of gaining a non-ratable benefit for themselves through their interest in Flying Eagle Class B shares and by issuing an allegedly false and misleading Registration Statement that misled unaffiliated Flying Eagle Class A stockholders about the diligence Defendants conducted into the viability of Skillz’s post-Merger future and that precluded unaffiliated Flying Eagle Class A stockholders from making an informed decision as to whether to exercise their redemption rights. The Amended Complaint sought, among other things, a Court order awarding Plaintiff and the other members of the class monetary damages.

I honestly don't know how Skillz is still surviving. Their apps are ghost towns, yet they're still spending money on advertising.