NEW YORK, Jan. 17, 2018 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of GoPro, Inc. ("GoPro" or the "Company") (NASDAQ: GPRO).  Investors who purchased GoPro securities between August 4, 2017 and January 5, 2018, inclusive (the "Class Period") may be affected.

Class action litigation has been filed in the United States District Court for the Northern District of California against GoPro, as well as the Company's CEO and CFO, on behalf of investors that purchased or otherwise acquired the publicly traded securities of GoPro during the Class Period alleging violations of the Securities Exchange Act of 1934.

GoPro develops and sells mountable and wearable cameras and accessories.  During the Class Period, GoPro's product offerings included HERO5/HERO6, a line of cloud-connected cameras, and Karma, a premium remote-controlled drone.

On Monday, January 8, 2018, before the market opened, GoPro issued a press release filed on Form 8-K with the SEC entitled "GoPro Announces Preliminary Fourth Quarter 2017 Results," disclosing that GoPro's fourth quarter 2017 sales were $340 million, significantly below GoPro's November 1, 2017 outlook for fourth quarter revenue of "470 million +/- $10 million."  GoPro blamed the results, in part, on "a negative impact of approximately $80 million for price protection on HERO6 Black, HERO5 Black and HERO5 Session cameras, as well as the Karma drone."  Additionally, GoPro said it was reducing its global workforce by approximately 20%, exiting the aerial market after selling its remaining Karma inventory, and that it would incur $23-33 million in restructuring charges.

Following the January 8, 2018 news, shares of GoPro's stock fell $0.96 per share, or approximately 12.7%, to close at $6.56 per share on January 8, 2018, on heavy trading volume.

The action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that (1) 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, (2) demand for GoPro's Karma drones was sufficiently weak that the Company could no longer afford to manufacture and sell them profitably, (3) the Company would be forced to dramatically slash prices on its newly launched HERO6 Black and its dated HERO5 Session Cameras, as well as its Karma drone during the quarter, and  would need to further slash HERO6 prices in January 2018, and (4) 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.

If you are a member of the proposed Class, you may move the court no later than March 12, 2018 to serve as a lead plaintiff for the purported class.  You need not seek to become a lead plaintiff in order to share in any possible recovery.  If you would like to discuss the complaint or our investigation, please contact us by emailing pmayer@kaplanfox.com or by calling 800-290-1952.  This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, the action, your rights, or your interests, please contact:

Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: dhall@kaplanfox.com

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California  94104
(415) 772-4700
Fax:  (415) 772-4707
E-mail: lking@kaplanfox.com

 

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SOURCE Kaplan Fox & Kilsheimer LLP

Copyright 2018 PR Newswire

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