[February 22, 2018] |
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SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in GoPro, Inc. of Class Action Lawsuit and Upcoming Deadline - GPRO
Pomerantz LLP announces that a class action lawsuit has been filed
against GoPro (News - Alert), Inc. ("GoPro" or the "Company") (NASDAQ: GPRO) and
certain of its officers. The class action, filed in United States
District Court, for the Northern District of California, and docketed
under 18-cv-00265, is on behalf of a class consisting of investors who
purchased or otherwise acquired the securities of GoPro between August
4, 2017 and January 5, 2018, both dates inclusive (the "Class Period").
Plaintiff seeks to recover compensable damages caused by Defendants'
violations of the federal securities laws and to pursue remedies under
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the
"Exchange Act") and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased GoPro securities between August
4, 2017, and January 5, 2018, both dates inclusive, you have until March
12, 2018, to ask the Court to appoint you as Lead Plaintiff for the
class. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
To discuss this action, contact Robert S. Willoughby at [email protected]
or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who
inquire by e-mail are encouraged to include their mailing address,
telephone number, and quantity of shares purchased.
[Click
here to join this class action]
GoPro, Inc. develops and manufactures wearable and gear mountable
cameras along with related accessories. Its primary product offerings
include: HERO5/HERO6, a lie of cloud-connected cameras; GoPro Plus, a
cloud-based storage solution that enables subscribers to access, edit
and share content; Quik, a desktop app that provides expanded editing
options for power users; Capture, a mobile app that allows users to
preview and play back shots, control their GoPro cameras, and share
content on the move using their smartphones; Karma, a compact, foldable
drone and versatile stabilization solution; and Karma Grip, a handheld
and body-mountable camera stabilizer to capture zero-shake and smooth
video. GoPro markets and sells its products primarily through retailers
and distributors, as well as through its website.
The Complaint alleges that throughout the Class Period, Defendants made
materially false and misleading statements regarding the Company's
business, operational and compliance policies. Specifically, Defendants
made false and/or misleading statements and/or failed to disclose that:
(i) demand for the GoPro brand had dramatically declined and retailers
were not stocking up for 2017 holiday sales to the extent GoPro had
budgeted for; (ii) demand for GoPro's Karma drones was sufficiently weak
that the Company could no longer afford to manufacture and sell them
profitably; (iii) the Company would be forced to dramatically slash
prices on its newly launched HERO6 Black and its dated HERO5 Black and
HERO5 Session cameras, as well as its Karma drone, during the quarter
and would need to further slash HERO6 prices in January 2018; and (iv)
as a result of the foregoing, GoPro was not on track to achieve the
financial results it had led the market to believe it was on track to
achieve during the Class Period.
On Monday, January 8, 2018, before the open of trading, GoPro issued a
press release filed on Form 8-K with the SEC (News - Alert) entitled "GoPro Announces
Preliminary Fourth Quarter 2017 Results," revealing that its fourth
quarter 2017 sales were $340 million, significantly below analysts'
projections of over $470 million. GoPro blamed the results on the
slashing of prices for its HERO6 Black, HERO5 Black, and HERO5 Session
cameras, as well as its Karma drone, during the quarter, which the
Company had been forced to engage in to move inventory and which had a
negative $80 million impact on revenues. GoPro also disclosed it was
cutting more than one-fifth of its workforce and exiting the drone
market altogether, requiring it to dump the rest of its Karma drone
inventory. GoPro had cut the price for its HERO5 Black camera in
December 2017 and announced it was now reducing the price of its newly
launched HERO6 model to $399 from $499. The workforce reduction would
cost GoPro $33 million, mainly in severance costs.
On this news, GoPro's stock price declined, falling from a close of
$7.52 per share on January 5, 2018, to trade as low as $5.04 per share
in intraday trading on January 8, 2018, before closing at $6.56 per
share on unusually high trading volume of more than 59 million shares
traded.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and
Paris, is acknowledged as one of the premier firms in the areas of
corporate, securities, and antitrust class litigation. Founded by the
late Abraham L. Pomerantz, known as the dean of the class action bar,
the Pomerantz Firm pioneered the field of securities class actions.
Today, more than 80 years later, the Pomerantz Firm continues in the
tradition he established, fighting for the rights of the victims of
securities fraud, breaches of fiduciary duty, and corporate misconduct.
The Firm has recovered numerous multimillion-dollar damages awards on
behalf of class members. See www.pomerantzlaw.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180222006238/en/
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