FaZe Holdings
Exchange: NASDAQ
Ticker: FAZE
Date of Filing: 01/31/2024
Court: Southern District of New York
Filing Deadline

04/01/2024

TWERSKY LAW GROUP Notifies FaZe Holdings Inc. (FAZE) Investors of Class Action

FaZe – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against FaZe Holdings Inc. (“FaZe” or “the Company”) (NASDAQ: FAZE) and certain officers of the company. Investors who acquired or owned FaZe securities are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is April 1, 2024.

The fundamental objective of this class action lawsuit is to recover for the benefit of FaZe investors, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.

 

ALLEGATIONS AGAINST FAZE

This is a stockholder action brought by Plaintiff against FaZe Holdings Inc. (“FaZe” or the “Company”) and the members of FaZe’s Board of Directors (the “Board” or the “Individual Defendants”) for their violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. §§ 78n(a), 78t(a), and U.S. Securities and Exchange Commission (“SEC”) Rule 14a-9, 17 C.F.R. §240.14a-9 (“Rule 14a-9”), in connection with the Board’s attempt to merge FaZe with GameSquare Holdings, Inc. (“GameSquare”) (the “Proposed Transaction”). On October 19, 2023, FaZe, GameSquare, and GameSquare’s wholly owned subsidiary GameSquare Merger Sub I, Inc. (“Merger Sub”) entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the terms of the Merger Agreement, GameSquare and FaZe will combine, with FaZe stockholders receiving 0.13091 shares of GameSquare common stock per share of FaZe common stock. Upon closing of the Proposed Transaction, current FaZe and GameSquare stockholders will each own approximately 45% and 55% of the combined company, respectively. On January 26, 2024, the Board authorized the filing of the materially incomplete and misleading Schedule 14A Definitive Proxy Statement (the “Proxy Statement”) with the SEC. Specifically, the Proxy Statement, which recommends that FaZe stockholders vote their shares in favor of the Proposed Transaction, contains materially incomplete and misleading information concerning, among other things: (i) FaZe’s and GameSquare’s financial projections; (ii) the financial analyses that support the fairness opinion provided by the Company’s financial advisor Current Capital Securities, LLC (“Current”); (iii) potential conflicts of interest faced by Current; and (iv) the background of the Proposed Transaction. The failure to adequately disclose such material information constitutes a violation of Sections 14(a) and 20(a) of the Exchange Act as FaZe stockholders need such information in order to make a fully informed decision in connection with the Proposed Transaction. The special meeting for FaZe stockholders to vote on the Proposed Transaction is currently scheduled for February 16, 2024. It is imperative that such Exchange Act violations are promptly cured to enable Plaintiff and FaZe’s other shareholders to make an informed decision whether to vote their shares in favor of the Proposed Transaction. Therefore, Plaintiff seeks to enjoin the stockholder vote unless and until such Exchange Act violations are cured.

 

ABOUT FAZE

  • FaZe is an esports gaming company. FaZe Holdings, Inc. engages in the management of a lifestyle and media brand founded and rooted in gaming and youth culture.

 

 

JOIN THIS CASE

It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in FaZe during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is April 1, 2024. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.

Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.



DOCUMENTS


COMPLAINT

PLEASE READ THE COMPLAINT  DOCUMENT BEFORE SIGNING UP FOR THIS CASE.

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