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Case 1:21-cv-01412 Document 1 Filed 02/17/21 Page 1 of 39
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`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
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`
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`
`
`WAFA SAID-IBRAHIM and ADHID IBRAHIM,
`on Behalf of Themselves and All Others Similarly
`Situated,
`
`
`
`Case No.
`
`CLASS ACTION
`
`Plaintiffs,
`
`COMPLAINT FOR VIOLATION OF
`THE FEDERAL SECURITIES LAWS
`
`
`
`
`
` v.
`
`
`
`FUBOTV INC., DAVID GANDLER, EDGAR M.
`BRONFMAN JR., and SIMONE NARDI
`
`JURY TRIAL DEMANDED
`
`Defendants.
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`
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`
`
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`

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`Case 1:21-cv-01412 Document 1 Filed 02/17/21 Page 2 of 39
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`Plaintiffs, Wafa Said-Ibrahim and Adhid Ibrahim (“Plaintiffs”), on behalf of themselves and
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`all others similarly situated, by and through his undersigned counsel, hereby brings this Class Action
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`Complaint for Violation of Federal Securities Law (“Complaint”) against FuboTV Inc. (“Company”
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`or “Fubo”) and David Gandler (“Gandler”), Fubo’s Co-Founder, Chief Executive Officer (“CEO”)
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`and director; Edgar M. Bronfman Jr., (“Bronfman”), Fubo’s Executive Chairman; and Simone Nardi
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`(“Nardi”), Fubo’s Chief Financial Officer (“CFO”) (collectively, “Individual Defendants,” and
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`together with the Company, “Defendants”), based upon, inter alia, the investigation conducted by
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`counsel, which included a review of the Company’s public documents, conference calls, and
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`announcements, United States (“U.S.”) Securities and Exchange Commission (“SEC”) filings, wire
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`and press releases published by and regarding the Company, analysts’ reports and advisories about the
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`Company and other information. Plaintiffs’ counsel’s investigation into the matters alleged herein is
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`ongoing and many relevant facts are known only to, or are exclusively within the custody or control
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`of, the Company and the Individuals Defendants. The Plaintiffs believe that substantial additional
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`evidentiary support will exist for the allegations set forth herein after a reasonable opportunity for
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`discovery.
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`NATURE OF THE ACTION
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`1.
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`This is a federal securities class action on behalf of a class consisting of all persons
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`other than Defendants who purchased or otherwise acquired common shares of Fubo stock between
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`March 23, 2020 and January 4, 2021, both dates inclusive (the “Class Period”), seeking to recover
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`damages caused by Defendants’ violation of the federal securities laws under Sections 10(b) and 20(a)
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`of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder,
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`against the Company and certain of its top officials.
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`2.
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`Founded in 2015, Fubo is a Florida corporation headquartered in New York. Fubo is
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`a multichannel video programming distributor (“vMVPD”), offering subscribers access to thousands
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`1
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`Case 1:21-cv-01412 Document 1 Filed 02/17/21 Page 3 of 39
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`of live sporting events as well as news and entertainment content. Fubo’s platform allows customers
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`to access content through streaming devices, and on SmartTVs, mobile phones, tablets and
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`computers. It streams its services to United States, Canada and Spain. In its regulatory filings and
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`public statements, Fubo positions itself as a content distributor at the intersection of three
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`“megatrends”: cord-cutting, connected TV advertising, and online sports wagering. Fubo revenues
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`are almost entirely derived from the sale of subscription services and advertising in the United States.
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`3.
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`During the Class Period, Defendants disseminated false and misleading statements
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`that misrepresented Fubo’s financial health and its operating condition. These misleading statements
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`included representations relating to a variety of Fubo’s business operations and performance metrics,
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`including, among others, Fubo’s ability to grow subscription levels and future profitability, seasonality
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`factors, cost escalations and potentially shrinking addressable market, ability to attract and generate
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`advertising revenue, the Company’s valuation, and its prospects of entering the arena of online sports
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`wagering. For example, one of the Company’s unrealistic promises included courageous claims of the
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`Company’s plans to scale its sport wagering business by, among other things, acquiring Balto Sports,
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`which significantly inflated the price of Fubo securities, and also created a false basis for its valuation
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`and revenue projections. In reality, the Company’s prospects of scaling the sports wagering business
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`was far from realistic given its size and market share, a fact that investors were never apprised of. As
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`some analysts later described Fubo’s strategy, it amounted to “putting a lipstick on a pig.”
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`4.
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`Investors learned the truth gradually through a series of research reports beginning on
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`December 23, 2020. Those reports revealed, among others things, that (i) Fubo’s growth in subscriber
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`and profitability was unsustainable past the one-time seasonal surge; (ii) Fubo’s offering of products
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`would be subject to cost escalation; (iii) Fubo could not successfully compete and perform as sports
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`book operator and could not capitalize on its online sports wagering opportunity; (iv) Fubo’s data and
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`inventory was not differentiated to allow Fubo to achieve its long-term advertising growth goals; (v)
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`2
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`Fubo’s valuation was overstated in light of its total revenue and subscription levels; and (vi) the
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`acquisition of Balto Sports did not provide the stated synergies and internal expertise, and did not
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`expand the Company’s addressable market into sports wagering.
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`5.
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`Upon the publication of the research reports, the price of Fubo securities declined
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`54% from a close of $52.59 on December 23, 2020 to a close of $24.24 on January 4, 2021. As a result
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`of Fubo’s wrongful acts and omissions, and the precipitous decline in the market value of Fubo’s
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`common shares, Plaintiffs and other Class members have suffered significant losses and damages.
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`JURISDICTION AND VENUE
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`6.
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`The claims asserted herein arise under Section 10(b) and 20(a) of the Exchange Act
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`(15 U.S.C. § 78j(b) and 78t(a)) and Rule 10b-5 promulgated thereunder by the SEC (17 C.F.R. §
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`240.10b-5).
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`7.
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`This Court has jurisdiction over the subject matter of this action pursuant to 28 U.S.C.
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`§ 1331 and Section 27 of the Exchange Act.
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`8.
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`Venue is proper in this Judicial District pursuant to Section 27 of the Exchange Act
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`(15 U.S.C. § 78aa) and 28 U.S.C. § 1391(b), as the alleged misstatements and omissions were made or
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`omitted, and the subsequent damages took place in this Judicial District. Pursuant to Fubo’s most
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`recent quarterly report (SEC Form 10-Q), as of November 11, 2020, there were 67,533,800 shares of
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`the Company’s common stock outstanding. Fubo’s common stock trades on the New York Stock
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`Exchange (“NYSE”). Accordingly, there are presumably hundreds, if not thousands, of investors in
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`Fubo’s common stock located within the U.S., some of whom undoubtedly reside in this judicial
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`district.
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`9.
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`In connection with the acts alleged in this Complaint, Fubo, directly or indirectly, used
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`the instrumentalities of interstate commerce, including interstate wires, U.S. Postal Service mail,
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`wireless spectrum, and the national securities exchange.
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`PARTIES
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`10.
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`Plaintiffs are residents of Calgary, Alberta, Canada. As set forth in the attached
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`Certification(s), incorporated by reference herein, Plaintiffs acquired Fubo shares during the Class
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`Period, at artificially inflated prices, and was damaged by the federal securities law violations and false
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`and/or misleading statements and/or material omissions alleged herein.
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`11.
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`Defendant Fubo is a Florida corporation with a principal place of business at 1330
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`Avenue of the Americas, New York, NY 10019. Fubo shares trade on the NYSE under the ticker
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`symbol “FUBO.”
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`12.
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`Defendant Gandler is the co-founder of the Company and has served as the
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`Company’s CEO and a director since April 1, 2020.
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`13.
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`Defendant Bronfman has served as the Company’s Executive Chairman since April
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`29, 2020.
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`14.
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`Defendant Nardi has served as the Company’s CFO since May 31, 2020. Defendant
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`Nardi served as Interim Chief Financial Officer since March, 2020.
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`15.
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`Defendants Gandler, Bronfman, and Nardi are sometimes referred to herein as the
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`“Individual Defendants.” The Individual Defendants, together with Fubo, are sometimes referred to
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`herein as the “Defendants.”
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`16.
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`The Individual Defendants possessed the authority to control the contents of
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`statements made by Fubo in the Company’s reports to the SEC, press releases and presentations to
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`securities analysts, money and portfolio managers and institutional investors, i.e., the market. The
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`Individual Defendants were provided with copies of the Company’s reports and press releases alleged
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`herein to be misleading prior to, or shortly after, their issuance and had the ability and opportunity to
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`prevent their issuance or cause them to be corrected. Due to their positions with Fubo, and their
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`access to Fubo’s material information that was unavailable to the public, the Individual Defendants
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`knew that the adverse facts described herein were not disclosed to and were being concealed from
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`investors. The Individual Defendants are liable for the false statements and omissions alleged herein.
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`SUBSTANTIVE ALLEGATIONS
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`Industry and Company Background
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`Virtual Multichannel Video Programming Distributors (“vMVPDs”), like Fubo,
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`A.
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`17.
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`aggregate live and on-demand television content for delivery over the internet. Unlike traditional cable
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`TV or satellite provider, Fubo does not supply its own data transport infrastructure (e.g., the cable)
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`and instead relies on subscribers to maintain their own internet connection to access its service.
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`vMVPDs offer service and product bundles to subscribers offering channels at a lower monthly rate
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`than offered by traditional cable/satellite providers. There currently are 271 online video services
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`vMVPDs that provide viewers with content from broadcast and cable network as well as streaming
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`providers. Internet-based streaming services and corresponding distribution platforms have
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`progressed at a staggering pace, allowing for faster and cost-effective transmissions. According to
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`industry experts, nearly six million subscribers dropped their traditional pay TV services in the third
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`quarter of 2019 alone. In light of this trend, companies sought to capitalize the new market.
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`18.
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`In recent years, platforms like Fubo have gained popularity over legacy set-top cable
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`boxes, as a way to view live TV. For example, Dish Network first introduced its service known as
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`“Sling TV” in 2015, through which it offered a selection of popular cable networks delivered via
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`mobile apps and other digital media players, or over the internet. By 2018, AT&T, Hulu, Sony and
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`YouTubeTV had all entered the market. S&P Global Markets Intelligence media research group
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`reports that the number of virtual multichannel service households will hit 15.3 million by the end of
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`2022.
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`19.
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`Founded in 2015, Fubo is a sports-first vMVPD offering subscribers access to
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`thousands of live sporting events as well as news and entertainment content. First launched as a
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`5
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`soccer streaming service, Fubo changed to an all-sports service in 2017 and then to its current vMVPD
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`format. Fubo’s streaming service is available in the United States, Canada and Spain and consists of
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`different subscription plans offering different channel packages. In its regulatory filings and public
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`statements, Fubo positions itself as a content distributor at the intersection of three “megatrends”:
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`cord-cutting, connected TV advertising, and online sports wagering. Fubo revenues are almost
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`entirely derived from the sale of subscription services and advertising in the United States.
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`20.
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`In March 2020, Fubo announced that it has agreed to merge with FaceBank Group
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`Inc. (“FaceBank”), a leading virtual entertainment company, focused on development, protection and
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`activation of the personal digital likeness assets of celebrities and consumers, for use in artificial
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`intelligence, entertainment, personal productivity and social networking.1 Pursuant to the merger
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`agreement between FaceBank and Fubo, Fubo became a wholly owned subsidiary of FaceBank and
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`FaceBank was renamed to FuboTV Inc. Through this merger, completed on April 1, 2020, Fubo
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`“obtained a secured revolving line of credit of $100 million” for the benefit of FuboTV as an
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`“inducement to the willingness of the FuboTV” to enter into the merger agreement. At the time of
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`the merger, FaceBank’s stock was traded over-the-counter under the ticker “FUBO.”
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`B. Materially False and Misleading Statements Issued During the Class Period
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`21.
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`On March 23, 2020, Fubo issued a press release, attached to Fubo’s 8-K filing with
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`the SEC the same day, entitled Facebank Group And FuboTV Announce Definitive Merger Agreement -
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`Combined Company To Be Named FuboTV, Inc., which quoted Defendant Gandler stating the following,
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`in relevant part, regarding the Company’s capabilities:
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`The business combination of FaceBank Group and fuboTV accelerates our
`ability to build a category defining company and supports our goal to
`provide consumers with a technology-driven cable TV replacement service
`
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`FaceBank’s prior name was Pulse Evolution, which gained popularity for computer-generated holographic
`1
`images of Tupac Shakur at 2012 Coachella and Michael Jackson at the 2014 Billboard Music Awards. Pulse technology
`also was used for VFX in such movies as “The Curious Case of Benjamin Button,” “Star Wars: Episode III – Revenge of
`the Sith,” “Rango” and “Transformers.”
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`6
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`for the whole family. With our growing businesses in the U.S., and recent beta
`launches in Canada and Europe, fuboTV is well-positioned to achieve its goal
`of becoming a world-leading live TV streaming platform for premium
`sports, news and entertainment content. In the current COVID-19
`environment, stay-at-home stocks make perfect sense - we plan to accelerate
`our timing to uplist to a major exchange as soon as practicable. We look forward
`to working with John and his team of creative visionaries.2
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`22.
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`On April 2, 2020, FaceBank Group and Fubo issued joint press entitled FaceBank
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`Group and fuboTV Announce Completion of Merger - Combined Company to Be Named fuboTV, Inc., which
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`quoted Defendant Gandler, stating the following, in relevant part, regarding the Company’s
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`capabilities:
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`With today’s closing, fuboTV is well-positioned to redefine the virtual MVPD
`space. Technology-driven cable TV replacement services are more important than
`ever, especially at this time when people are staying safe at home watching
`television for needed information, entertainment and escape.
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`23.
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`On May 29, 2020, Fubo—still operating under the name FaceBank Group, Inc.—filed
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`its yearly report on Form 10-K with the SEC for the fiscal year ended December 31, 2019 (the “2019
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`Annual Report”). The 2019 Annual Report was signed by Defendants Gandler and Bronfman
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`Appended as Exhibits 32.1 and 31.2 to the 2019 Annual Report were signed certifications pursuant to
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`the Sarbanes-Oxley Act of 2002 (“SOX Certifications”), wherein Defendant Gandler certified that
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`“the [2019 Annual Report] does not contain any untrue statements of a material fact” and that “the
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`information included in the [2019 Annual Report] fairly presents, in all material respects, the financial
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`condition and results of operations and cash flows of the [Company]” in compliance with Section
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`13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934.”
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`24.
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`The 2019 Annual Report touted the synergies that the combination between FaceBank
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`Inc. and Fubo purportedly created, stating as follows:
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`The Company is a leading digital entertainment company, combining fuboTV’s
`direct-to-consumer live TV streaming platform with FaceBank’s technology-driven
`IP in sports, movies and live performances. This business combination,
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`Unless otherwise noted, all emphasis herein and hereinafter is added.
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`7
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`2
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`Case 1:21-cv-01412 Document 1 Filed 02/17/21 Page 9 of 39
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`operating as fuboTV, Inc., will create a content delivery platform for
`traditional and future-form IP. fuboTV plans to leverage FaceBank’s IP
`sharing relationships with leading celebrities and other digital technologies
`to enhance its already robust sports and entertainment offerings.
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`Since the Merger, while we continue our previous business operations, we are
`principally focused on offering consumers a leading live TV streaming platform for
`sports, news and entertainment through fuboTV. fuboTV revenues are almost
`entirely derived from the sale of subscription services and advertising in the United
`States, though fuboTV has started to assess expansion opportunities into
`international markets, with operations in Canada and the launch in late 2018 of its
`first ex-North America offering of streaming entertainment, to consumers in Spain.
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`25.
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`The 2019 Annual Report also stated that the following regarding the Company’s
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`Critical Accounting Policies:
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`Acquisitions and Business Combinations
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`The Company allocates the fair value of purchase consideration issued in
`business combination transactions to the tangible assets acquired, liabilities
`assumed, and separately identified intangible assets acquired based on their
`estimated fair values. The excess of the fair value of purchase consideration over
`the fair values of these identifiable assets and liabilities is recorded as goodwill. Such
`valuations require management to make significant estimates and assumptions,
`especially with respect to intangible assets. Significant estimates in valuing certain
`intangible assets include, but are not limited to, future expected cash flows from,
`acquired technology, trade-marks and trade names, useful lives, and discount rates.
`Management’s estimates of fair value are based upon assumptions believed to be
`reasonable, but which are inherently uncertain and unpredictable and, as a result,
`actual results may differ from estimates. During the measurement period, which is
`one year from the acquisition date, we may record adjustments to the assets
`acquired and liabilities assumed, with the corresponding offset to goodwill. Upon
`the conclusion of the measurement period, any subsequent adjustments are
`recorded to earnings.
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`26.
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`On July 6, 2020, Fubo (under the name FaceBank) filed its quarterly report on SEC
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`Form 10-Q for the first fiscal quarter 2020 (“1Q 2020 Report”). Appended as Exhibits 32.1 and 31.2
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`to the 1Q 2020 Report were signed SOX Certifications, wherein Defendants Gandler and Nardi,
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`respectively, certified that “the [1Q 2020 Report] does not contain any untrue statements of a material
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`fact” and that “the information included in the [1Q 2020 Report] fairly present in all material respects
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`8
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`the financial condition, results of operations and cash flows of the [Company]” in compliance with
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`Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934.”
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`27.
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`In connection with the 1Q 2020 Report, the Company issued a press release,
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`summarizing the Company’s financial and operational results, as well as a letter to shareholders
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`released on July 8, 2020 from Defendant Gandler. In the letter to shareholders, Defendant Gandler
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`stated, regarding Fubo’s strategy and focus:
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`We believe fuboTV is at the forefront of the streaming revolution and has a
`significant advantage not only over peers in the vMVPD space but also over
`traditional cable television. We offer cord-cutters a total cable TV replacement
`with top Nielsen-ranked sports, news and entertainment channels. What sets
`fuboTV apart is our internally built tech stack that keeps us innovating
`ahead of the industry. With premium features like 4K streaming, personalized
`live TV recommendations and recent app updates that integrate live video into the
`product experience, we believe a fuboTV subscription offers consumers the
`best value of any other live TV streaming platform. We believe consumers will
`continue to choose streaming over traditional pay television because of this more
`personalized, premium viewing experience that is also less expensive.
`
`fuboTV had an extremely productive Q1, despite a complete shutdown of sports,
`and we have made several significant recent announcements that highlight
`the competitive strength of our company and further differentiate us in the
`marketplace. While we expect that the COVID-19 pandemic will have lasting
`effects on consumer behavior and live television viewing, vMVPDs are also a more
`affordable alternative to pay TV, which, we believe, in this current economic
`climate, further accelerates adoption. We believe we are well positioned as a
`leader in the industry.
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`28.
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`On August 10, 2020, the Company changed its name to fuboTV Inc. and as of May 1,
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`2020, the Company’s trading symbol was changed to “FUBO.”
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`29.
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`On August 13, 2020, Fubo filed its quarterly report on SEC Form 10-Q for the second
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`fiscal quarter 2020 (“2Q 2020 Report”). Appended as Exhibits 31.1 and 31.2 to the 2Q 2020 Report
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`were signed SOX Certifications, wherein Defendants Gandler and Nardi, respectively, certified that
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`“the [2Q 2020 Report] does not contain any untrue statements of a material fact” and that “the
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`information included in the [2Q 2020 Report] fairly presents, in all material respects, the financial
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`9
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`Case 1:21-cv-01412 Document 1 Filed 02/17/21 Page 11 of 39
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`condition and results of operations and cash flows of the [Company]” in compliance with Section
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`13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934.”
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`30.
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`In connection with the 2Q 2020 Report, the Company issued a press release,
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`summarizing the Company’s financial and operational results. The press release quoted Defendant
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`Gandler, stating:
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`We believe consumers will continue to choose streaming over traditional pay
`television, especially in the current economic climate because of its more
`personalized, premium viewing experience. Macro trends towards streaming,
`combined with our strong second quarter results and continued momentum,
`reinforce our confidence in our business and the vMVPD space. Looking
`ahead to Q3, with the gradual return of sports, we anticipate an increase in
`subscribers, viewership and that our portion of revenue derived from advertising
`will grow. At the close of Q3 we expect paid subscribers to reach 340,000 - 350,000,
`which will be an increase of 20% year-over-year. The growth of streaming is one
`of the most significant changes to television, and television advertising, in the last
`several decades. fuboTV is at the forefront of the streaming revolution and we
`are excited for existing and new investors to join us on this journey.
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`31.
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`Also in connection with the 2Q Report, the Company furnished a letter to
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`shareholders dated August 13, 2020 from Defendant Gandler. In the letter to shareholders,
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`Defendant Gandler reiterated that Fubo was “at the forefront of the streaming revolution,” and also
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`providing the following summary:
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`The strength of the streaming business during the pandemic is a clear sign that
`vMVPDs have a bright future. fuboTV’s solid second quarter validated our belief
`that consumers are seeking lower cost alternatives to traditional television. Our
`streaming hours grew over the prior year despite a near total shutdown of sports.
`This is primarily a result of fuboTV’s expanded programming offering for the entire
`family combined with product innovations that deliver a premium viewing
`experience not available through traditional television. We expect streaming hours
`to grow as sports return.
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`32.
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`On September 15, 2020, the Company furnished another letter to shareholders
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`addressed from Defendant Gandler, in which Defendant Gandler stated, regarding Fubo’s business
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`model and future growth strategy:
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`[W]e continue to believe fuboTV is at the forefront of the streaming TV
`revolution. fuboTV is the leading sports-first, live TV streaming platform,
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`10
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`offering subscribers access to tens of thousands of live sporting events annually as
`well as leading news and entertainment content. We offer a broad mix of 100+
`channels, including 43 of the top 50 Nielsen-ranked networks across sports, news
`and entertainment (Primetime A18-49), making fuboTV a leading cable TV
`replacement product for the entire household. Our retention rate has remained high
`during the pandemic as customers have found a diverse range of content on the
`platform to satisfy their needs.
`
`At the core of our offering is our proprietary technology platform optimized
`for live TV and sports viewership. Our proprietary technology stack has enabled
`us to regularly offer new features and functionality. For example, we were the first
`virtual multichannel video programming distributor (vMVPD) to stream in 4K
`resolution. We also offer multi-view on Apple TV, which enables subscribers to
`watch two live streams simultaneously, as well as the ability to watch select sports
`content from multiple camera angles.
`
`*
`
`*
`
`*
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`Furthermore, we believe fuboTV’s sports package is unparalleled in the
`marketplace. fuboTV offers more than 50,000 live sporting events each year and
`is the only vMVPD streaming 11 Thursday Night Football (FOX) games in 4K this
`season. The start of the NFL season has been significant for fuboTV. It’s been
`widely publicized that television ratings declined nearly 13% for the NFL’s 2020
`Kickoff Game on Thursday, September 10. fuboTV, on the other hand, has
`achieved record viewership with our NFL carriage. On Sunday, September 13,
`our viewing hours doubled year-over-year and reached one million hours for
`the first time. Cord-cutters are clearly embracing streaming platforms for
`sports viewing.
`
`33.
`
`Defendant Gandler summarized Fubo’s performance and strategy, stating: “fuboTV
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`continues on the path of solid growth with double digital revenue and subscriber increases year-over-
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`year [and are] confident in the continued strength of our business . . .”
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`34.
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`On August 11, 2020, Fubo filed with the SEC a Registration Statement on Form S-1
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`signed by Defendants Gandler, Nardi, and Bronfman, relating to the proposed follow-on public
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`offering of its common stock. On September 15, 2020, October 1, 2020, and October 5, 2020, Fubo
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`filed revised versions of the Registration Statement on Forms S-1/A, each of which was signed by
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`Defendants Gandler and Nardi. On October 7, 2020, the Registration Statement was declared
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`effective by the SEC. The Registration Statement was incorporated into and formed part of the
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`Prospectus filed on October 9, 2020.
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`11
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`35.
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`Fubo offered to sell to the public 18.3 million common shares (excluding the
`
`underwriters’ option to purchase an additional 2.75 million common shares), for $10 per share.
`
`FuboTV closed its public offering of 19,706,708 common stock on October 13, 2020, including the
`
`full exercise of the underwriters’ option, generating $ 197 million in gross offering proceeds.
`
`36.
`
`The Prospectus Summary contained materially false and misleading statements relating
`
`to Fubo’s business model, stating:
`
`Our business model is ‘come for the sports, stay for the entertainment.’ This
`translates to leveraging sporting events to acquire Subscribers at lower
`acquisition costs, given the built-in demand for sports. We then leverage our
`technology and data to drive higher engagement and induce retentive
`behaviors such as favoriting channels, recording shows, and increasing
`discovery through our proprietary machine learning recommendations
`engine. Next, we look to monetize our growing base of highly engaged
`subscribers by driving higher average revenue per user (ARPU).
`
`37.
`
`The Registration Statement identified Fubo’s “Competitive Strengths,” which
`
`purportedly contributed to Fubo’s past revenue and subscriber growth:
`
`Our Competitive Strengths
`
`We believe that fuboTV Pre-Merger’s revenue and subscriber growth are a result of
`the following competitive strengths:
`
` Comprehensive Sports, News & Entertainment Offering. While we
`continue to attract consumers with our extensive premium sports content,
`we believe our increasingly broad and deep news and entertainment content
`offerings enhances total viewership and retention of our users as a pay TV
`replacement. We believe we will continue to optimize our content offering
`by identifying and executing strategic deals that best suit our consumers’
`preferences.
`
` Delivering Significant Value to Our Subscribers. We seek to provide a
`flexible product offering, delivering leading bundles for consumers that best
`meet their target price point. fuboTV’s base package is less expensive than
`traditional cable or satellite options and includes a broad array of 100+
`channels across sports, news and entertainment.
`
` Proprietary Technology and First-Party Data. Because we design,
`develop and operate all core segments of our platform, we are able to capture
`and analyze how our subscribers engage our offering. These unique data
`
`
`
`12
`
`

`

`Case 1:21-cv-01412 Document 1 Filed 02/17/21 Page 14 of 39
`
`
`
`insights allow us to better understand and continually adjust our product and
`strategy to better meet the needs of our subscribers.
`
` Intuitive User Experience. We are continuing to innovate to give
`subscribers a premium viewing experience that they are unable to find with
`cable TV and are regularly first-to-market with new product features. Our
`product is highly customizable and provides an optimized experience for
`personalized live streaming, including capabilities such as unique user
`profiles, multiple angle and screen viewing for sports, favorites lists, a
`dynamic recommendation engine and Cloud DVR offerings.
`
` Efficiency of Cloud-based OTT model. fuboTV’s capital-efficient cloud-
`based OTT model doesn’t require us to devote capex to procuring,
`maintaining inventory of and delivering superfluous, and often outdated,
`proprietary set-top boxes to customers that do not want or need them.
`Furthermore, our proprietary technology infrastructure is highly scalable,
`which we expect to provide ongoing cost and margin advantages as we grow.
`
`38.
`
`Regarding the Company’s growth, the Registration Statement provided, in relevant
`
`part:
`
`Our growth strategy is to acquire subscribers who are attracted to our premium
`sports offering and can find with us a compelling sports, news and entertainment

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