#USA #New York #Securities Fraud #Pomerantz LLP #Skillz Inc.

Pomerantz LLP Launches Investigation into Skillz Inc.

In a significant move, Pomerantz LLP has initiated an investigation concerning potential securities fraud against Skillz Inc. (NYSE: SKLZ), a prominent player in the mobile gaming industry. This inquiry arises as a result of the company’s troubling disclosures that may pose risks to its investors.

Background of the Investigation

On September 2, 2025, Skillz revealed alarming news in a filing with the U.S. Securities and Exchange Commission (SEC). The company disclosed that Tether Studios and its affiliate, Tether Games, intended to terminate all existing agreements with Skillz, effective September 1, 2025. This partnership previously allowed Skillz to license its gaming software to Tether, enabling both companies to share revenue generated from user fees. The abrupt termination of these contracts raised questions about Skillz's future revenue stream.

In a bid to combat this significant blow, Skillz filed a lawsuit against Tether on the same day it announced the termination. The lawsuit aims to challenge Tether’s decision and the validity of the reasons cited for halting their partnership, suggesting that Skillz may believe it was wronged in the process.

Market Reaction

Following the news, Skillz's stock experienced a significant drop, plummeting by $1.50 per share, which translates to a staggering 17.22% decrease, culminating the day at $7.21 per share. This swift reaction underscores investors' concerns regarding the sustainability of Skillz's business model and profitability, now that a significant revenue source is in jeopardy.

What Investors Should Do

Investors who believe they may have been affected by these developments are encouraged to reach out to the Pomerantz Law Firm. Specifically, Danielle Peyton can be contacted at [email protected] or at 646-581-9980, ext. 7980. Engaging with legal representatives may be crucial for potentially affected parties seeking accountability and restitution.

About Pomerantz LLP

Pomerantz LLP is renowned for its work in securities law, class-action lawsuits, and antitrust litigation. With an extensive history dating back over 80 years, the firm, founded by Abraham L. Pomerantz—often referred to as the dean of the class action bar—has become a stalwart in fighting for the rights of investors and corporate accountability. The firm's impressive track record includes recovering substantial damages for victims of corporate wrongdoing.

At this juncture, the situation remains volatile, and investors are advised to stay informed about ongoing developments at Skillz. As the Pomerantz investigation continues to unfold, it will be crucial for investors to monitor any emerging news and subsequent legal proceedings that could affect their financial stakes. The outcomes of these investigations may not only set a precedent for Skillz but also have wider implications in the gaming industry.

The case emphasizes the importance of vigilance in corporate affairs and highlights the role of legal entities like Pomerantz in protecting investor interests. Keeping abreast of such investigations can empower investors to make informed decisions about their financial strategies.

As developments progress, the outcome will significantly affect both the investors involved and the operational landscape of Skillz Inc.