Glancy Prongay & Murray LLP Files Securities Class Action Lawsuit Against GoPro, Inc.
January 14 2016 - 9:30AM
Business Wire
Glancy Prongay & Murray LLP (“GPM”) announces that it has
filed a class action lawsuit in the United States District Court
for the Northern District of California on behalf of a class (the
“Class”) of purchasers of GoPro, Inc. (“GoPro” or the
“Company”) (Nasdaq: GPRO) securities between July 21, 2015 and
January 13, 2016, inclusive (the “Class Period”).
If you are a member of the Class described above, you may move
the Court no later than 60 days from the date of this notice to
serve as lead plaintiff. Please contact Lesley Portnoy at
888-773-9224 or 310-201-9150, or at shareholders@glancylaw.com to
discuss this matter.
On October 28, 2015, the Company issued a press release
announcing poor third quarter 2015 results. Specifically, GoPro
reported revenue of $400 million, far below the company’s own
guidance of $430 million to $445 million.
On the same day, during the Company’s quarterly earnings
conference call with investors and analysts, GoPro CEO, Nick
Woodman, attributed the Company’s poor performance, in part, to
week sales related to the Company’s HERO4 Session camera.
Specifically addressing the Company’s guidance miss, Woodman stated
“our guidance going into the quarter was actually for a significant
additional amount of Session to ship. . . . Session didn't sell
through as well as we anticipated . . . .”
On this news, the Company’s shares fell $4.59, or more than 15%,
to close at $25.62 per share on October 29, 2015.
On January 13, 2016, GoPro issued a press release announcing
preliminary fourth quarter 2015 revenue of $435 million, falling
below the Company’s guidance of $500 million to $550 million. GoPro
also announced that it planned to reduce its workforce by
approximately 7% and incur approximately $5 million to $10 million
in restructuring costs, substantially all of which relates to
severance costs. The Company attributed its dismal fourth quarter
results to “lower than anticipated sales of its capture devices”
and “a $21 million reduction for price protection related charges
resulting from the HERO4 Session repricing in December.”
On this news, shares of GoPro fell as much as $4.08 per share,
or 27.9%, to lows of $10.52 per share during after hours trading on
January 13, 2016.
The complaint charges GoPro and certain of its officers with
violations of the federal securities laws. Specifically, the
complaint alleges that throughout the Class Period, defendants
failed to disclose: (1) that the Company was experiencing weak
sales of its HERO line of cameras throughout the Class Period; (2)
that the Company was experiencing weak HERO4 Session sales at the
time the third Quarter guidance was announced; (3) that the
Company’s third quarter 2015 guidance was based on the assumption
that GoPro would be able to sell a significant additional amount of
HERO4 Session cameras; (4) that the Company’s third and fourth
quarter 2015 guidance was inflated and unrealistic; and (5) that,
as a result of the foregoing, Defendants’ statements about GoPro’s
business, operations, and prospects, were false and misleading
and/or lacked a reasonable basis.
To be a member of the Class you need not take any action at this
time; you may retain counsel of your choice or take no action and
remain an absent member of the Class. If you wish to learn
more about this action, or if you have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Lesley Portnoy,
Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park
East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150,
by e-mail to shareholders@glancylaw.com, or visit our website
at http://www.glancylaw.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: http://www.businesswire.com/news/home/20160114005382/en/
Glancy Prongay & Murray LLP, Los AngelesLesley Portnoy,
310-201-9150 or
888-773-9224shareholders@glancylaw.comwww.glancylaw.com
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