NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors that purchased iRobot Corporation (NASDAQ: IRBT) securities between November 21, 2016 and October 22, 2019 (the “Class Period”). Investors have until December 23, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On April 23, 2019, after the close of trading, iRobot surprised the market by announcing quarterly revenues that were below analyst expectations and also revealed surging inventory levels. In response to 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.
Then, on July 23, 2019, after the close of trading, iRobot decreased its full-year earnings forecast. On 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.
Finally, on October 22, 2019, after the close of trading, 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. The Company reported increased inventory levels once again, with third quarter 2019 ending inventory of $248 million or 149 days in inventory (“DII”) compared to the $161 million or 113 DII a year prior. On this news, iRobot’s stock price fell from $54.03 per share on October 22, 2019, to $49.06 per share on October 23, 2019.
The complaint, filed on October 24, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (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) as a result, iRobot’s public statements were materially false and misleading at all relevant times.
If you purchased iRobot securities during the Class Period, continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.