(NASDAQ GS: IRBT)
Attention investors who purchased shares of iRobot Corporation between November 21, 2016 and October 22, 2019:
Rigrodsky & Long is investigating claims brought in a securities fraud class action complaint against iRobot Corporation ("iRobot") concerning whether iRobot and certain of the Company's directors and/or officers made materially false and misleading statements and failed to disclose materially adverse facts during the period November 21, 2016 and October 22, 2019, inclusive (the "Class Period"), concerning iRobot's business, operations and prospects. These misrepresentations and omissions artificially inflated the price of iRobot's stock throughout the Class Period.
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of iRobot Corporation (“iRobot” or the “Company”) (NASDAQ GS: IRBT) between November 21, 2016 and October 22, 2019, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of iRobot during the Class Period, or purchased shares prior to the Class Period and still hold iRobot, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at firstname.lastname@example.org, or at http://rigrodskylong.com/contact-us/.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on April 23, 2019, after the close of trading, iRobot surprised the market when it announced that quarterly revenues were below analyst expectations and also revealed surging inventory levels. Specifically, iRobot reported days in inventory (“DII”) of 140 for the three months ended March 30, 2019, compared to DII of 101 for the three months ended March 31, 2018. Inventory also rose to $181 million as of March 30, 2019, up from $112 million in April 2018. Following this news, iRobot’s stock price fell from $130.57 per share on April 23, 2019, to $100.42 per share on April 24, 2019, a decline of over 23% in one trading day.
Then, on July 23, 2019, after the close of trading, iRobot cut its full-year earnings forecast. Specifically, fiscal year 2019 revenue guidance was lowered from a range between $1.28 billion and $1.31 billion, to a range between $1.2 billion and $1.25 billion, and earnings per share guidance was lowered from a range between $3.15 and $3.40 to a range between $2.40 and $3.15. Following this news, iRobot’s stock price fell from $89.63 per share on July 23, 2019, to $74.51 per share on July 24, 2019, a decline of nearly 17% in one trading day.
Finally, on October 22, 2019, after the close of trading, iRobot issued a press release reporting third quarter 2019 financial results. iRobot cut the high end of its revenue expectations for the year, from $1.25 billion to $1.21 billion, and said it rolled back price increases after a “suboptimal” customer response. iRobot reported increased inventory levels once again, with third quarter 2019 ending inventory of $248 million or 149 DII compared to the $161 million or 113 DII a year prior.
On this news, shares of iRobot fell over 9%, closing at $49.06 per share on October 23, 2019, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than December 23, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Delaware, New York, and California, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
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