Flying Eagle $10M Securities Class Action Settlement

Consumers who held Flying Eagle Acquisition Corp. Class A common stock as of Dec. 16, 2020, may qualify to claim a share of a $10,000,000 award from a class action settlement.

Flying Eagle Acquisition Corp. agreed to pay $10 million to resolve a class action lawsuit alleging the company and related defendants breached their fiduciary duties and made misleading statements in connection with the company's merger with Skillz Inc.

Who are the class members?

The class includes:

• All holders of Flying Eagle Class A common stock, whether as beneficial or record holders, as of the closing of the merger on Dec. 16, 2020
• The heirs, successors-in-interest, transferees and assigns of those holders
• Any person or entity who subsequently purchased such stock
• Those who inherited or otherwise acquired the shares after the merger date

The following shares are excluded:

• Shares of Class B common stock that converted into Class A solely in connection with the merger
• Shares of Class A common stock redeemed before the merger

How much is the Flying Eagle payout?

Pro rata payment: The total settlement fund is $10,000,000 but will also be used to pay court-approved deductions for taxes, notice and administration costs, attorneys’ fees and expenses, and service awards to plaintiffs. The amount each class member receives will depend on the number of eligible shares they held as of Dec. 16, 2020, and the total number of eligible shares held by all class members.

No action needed to receive payment

Class members do not need to submit a claim form to receive a payment. The settlement administrator will pay eligible class members directly using records from the company and its transfer agent. There is no online or PDF claim form to submit.

The administrator will work with Depository Trust & Clearing Corp. participants and intermediaries to ensure class members who held shares through a broker or other nominee receive their payment. For beneficial owners, their broker or intermediary will handle the distribution.

Payout options

Payments will be made by paper check.

$10 million settlement fund breakdown

The $10,000,000 settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys’ fees and expenses: Up to $2,000,000
• Service awards to class representatives: Up to $5,000 per plaintiff paid from attorneys’ fees

• Payments to eligible class members: The remainder of the settlement fund

Important dates

• Settlement fairness hearing: Sept. 2, 2025

When is the Flying Eagle stockholder litigation payout date?

Payments to eligible class members will be made after the court grants final approval of the settlement and any appeals are resolved.

Why did this class action settlement happen?

The class action lawsuit alleged Flying Eagle Acquisition Corp. and related defendants breached their fiduciary duties to shareholders by pursuing a merger with Skillz Inc. for their own benefit and issuing a proxy statement that was allegedly false or misleading. The plaintiffs claimed these actions prevented unaffiliated Class A shareholders from making an informed decision about whether to redeem their shares.

The defendants denied all allegations but agreed to settle to avoid the burden, expense and distraction of continued litigation.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ