NEW YORK, Nov. 25, 2016 /PRNewswire/ -- Pomerantz LLP
announces that a class action lawsuit has been filed against GoPro,
Inc. ("GoPro" or the "Company")(NASDAQ: GPRO) and certain of
its officers. The class action, filed in United States
District Court, Northern District of California, and docketed under 16-cv-06654, is
on behalf of a class consisting of all persons or entities who
purchased or otherwise acquired GoPro between September 19, 2016 and November 4, 2016, both dates inclusive (the
"Class Period"), seeking 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 during the Class
Period, you have until January 17,
2017 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
rswilloughby@pomlaw.com 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 number of
shares purchased.
[Click here to join this class action]
GoPro develops and sells mountable and wearable cameras and
accessories in the United States
and internationally. The Company's cameras are designed
primarily for filming while immersed in action, such as outdoor or
extreme sports. On October 23, 2016,
following months of delays, GoPro released the Karma drone, a
compact, foldable drone designed for aerial photography using
GoPro's cameras.
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) GoPro's
Karma drones were prone to losing power midflight, causing them to
fall out of the sky; (ii) the Company had thus significantly
overstated the utility of and likely customer demand for the Karma
drone; (iii) the foregoing issue, when publicly known, would
necessitate a costly recall of the Company's Karma drones; and (iv)
as a result, GoPro's public statements were materially false and
misleading at all relevant times.
On November 3, 2016, shortly
before the market closed, GoPro issued a press release and filed a
Current Report on Form 8-K with the SEC announcing the Company's
financial and operating results for the quarter ended September 30, 2016 (the "Q3 2016 8-K"). Among
other information, the Q3 2016 8-K provided revenue guidance for
2016 in the range of $1.25 billion
and $1.3 billion—a significant
decrease from the revenue guidance of $1.35
billion and $1.5 billion that
the Company had provided in reporting its financial and operating
results for the previous quarter, and consistent with an
anticipated recall of the Company's Karma drone.
On this news, GoPro's share price fell $0.90, or 7.01%, to close at $11.94 on November 3,
2016, and fell an additional $0.78, or 6.53%, to close at $11.16 on November 4,
2016.
On November 8, 2016, post-market,
GoPro announced the recall of the approximately 2,500 Karma drones
purchased by consumers since the product's release, advising that
the Company had discovered that Karma units were prone to losing
power during operation.
On this news, GoPro's share price fell $0.45, or 4.14%, to close at $10.41 on November 9,
2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los
Angeles, 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
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP