The Law Offices of Frank R. Cruz (“FRC”) announces that a class action lawsuit has been filed on behalf of investors that acquired iRobot Corporation (“iRobot” or the “Company”) (NASDAQ: IRBT) securities between November 21, 2016 and October 22, 2019, inclusive (the “Class Period”). iRobot investors have until December 23, 2019 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On April 23, 2019, after the market closed, the Company announced quarterly revenues that were below analyst expectations and disclosed increased inventory levels of 140 days in inventory (“DII”), compared to 101 DII the prior year period.
On this news, the Company’s share price fell $30.15, or over 23%, to close at $100.42 per share on April 24, 2019, thereby injuring investors.
Then, on July 23, 2019, after the market closed, the Company lowered its full-year guidance, expecting revenue between $1.2 billion and $1.25 billion, from prior guidance between $1.28 billion and $1.31 billion.
On this news, the Company’s share price fell $15.12, or nearly 17%, to close at $74.51 per share on July 24, 2019, thereby injuring investors further.
On October 22, 2019, after the market closed, the Company lowered the high-end of its full-year revenue guidance from $1.25 billion to $1.21 billion, due to its rollback of price increases after a “suboptimal” customer response. iRobot also reported increased inventory levels of $248 million or 149 DII, compared the prior year period of $161 million or 113 DII.
On this news, the Company’s share price fell $4.97, or over 9%, to close at $49.06 per share on October 23, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) iRobot's explosive growth was not based on increased demand, expanding margins, and product innovations, as it claimed, but rather based on channel stuffing; (2) the Company attempted to conceal its actions by acquiring its distributors in Europe and Asia; (3) these acquisitions were designed to clean up the company's global inventory and mask falling demand; and (4) that as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased iRobot securities during the Class Period, you may move the Court no later than December 23, 2019 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of FRC, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067, at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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