SAN DIEGO & SAN JOSE, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Arlo Technologies, Inc. (NYSE: ARLO) filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 in connection with Arlo's August 3, 2018 initial public offering ("IPO"). Arlo's products enable users to monitor their environments and connect with their families and businesses from any location with an internet connection.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/arlo-technologies-inc/
Arlo Accused of Misleading Investors About Its Leading Product's Battery Issues
According to the complaint, in its August 2018 IPO, Arlo sold 11,747,250 shares of common stock at a price of $16.00 per share, raising approximately $167.4 million in proceeds. On November 30, 2018, Arlo announced its "flagship wire-free security camera system" known as Arlo Ultra that used a newly designed rechargeable battery. Just days later, on December 3, 2018, Arlo reported a delay in shipments of Ultra, citing a quality issue with its battery. As a result, Arlo is not expected to ship the product until the first quarter of 2019, missing the crucial holiday season. When Arlo lowered its fourth quarter 2018 financial guidance, Arlo's stock price closed at $9.28 per share on December 3, 2018—a 42% decline from its IPO price.
Arlo Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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