Pomerantz Law Firm Investigates Skillz Inc. for Potential Securities Fraud

What's Happening?

Pomerantz LLP has initiated an investigation into Skillz Inc. (NYSE: SKLZ) on behalf of its investors. The investigation is focused on whether Skillz and certain of its officers and directors have engaged in securities fraud or other unlawful business practices. This development follows Skillz's recent disclosure that Tether Studios and its affiliate Tether Games plan to terminate all agreements with Skillz, effective September 1, 2025. These agreements involved the licensing of Skillz's software to Tether for monetizing games, with both companies sharing revenue from user entry fees. In response to Tether's termination notice, Skillz filed a lawsuit on September 1, 2025, to block the termination and is disputing Tether's reasons for ending the deal. Following this news, Skillz's stock price dropped by 17.22%, closing at $7.21 per share on September 3, 2025.

Why It's Important?

The investigation by Pomerantz LLP could have significant implications for Skillz Inc. and its investors. If the investigation finds evidence of securities fraud or other unlawful practices, it could lead to legal action against the company and its executives, potentially resulting in financial penalties or changes in leadership. This situation also highlights the risks associated with business partnerships and the impact of their dissolution on a company's financial health and stock performance. Investors in Skillz may face financial losses, and the company's reputation could be at stake, affecting its ability to attract future business partners and investors.

What's Next?

As the investigation by Pomerantz LLP progresses, Skillz Inc. may face increased scrutiny from regulators and investors. The outcome of the lawsuit filed by Skillz to block Tether's termination of agreements will also be closely watched, as it could influence the company's financial stability and market position. Stakeholders, including investors and business partners, will be monitoring the situation for any developments that could impact their interests. Depending on the findings, Skillz may need to implement changes in its business practices or governance to restore investor confidence.