The Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of GoPro, Inc. Investors & Enc...
January 14 2016 - 2:59PM
Business Wire
Law Offices of Howard G. Smith announces that a class
action lawsuit has been filed on behalf of investors who purchased
GoPro, Inc. (“GoPro” or the “Company”) (NASDAQ: GPRO) securities
between July 21, 2015 and January 13, 2016, inclusive (the “Class
Period”). GoPro investors have until March 14,
2016 to file a lead plaintiff motion.
Investors who suffered losses over $1 million on their GoPro
investments are encouraged to contact the Law Offices of Howard G.
Smith to discuss their legal rights in this class action at
888-638-4847 or by email to howardsmith@howardsmithlaw.com.
The class action complaint filed on behalf of shareholders
alleges that Defendants made materially false and misleading
statements to investors and/or 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.
On October 28, 2015, the Company issued a press release
announcing poor third quarter 2015 revenue of $400 million, far
below the company’s own guidance of $430 million to $445 million.
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 weak 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,
thereby injuring investors.
Subsequently, 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. In addition, GoPro 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, thereby injuring investors.
If you purchased shares of GoPro during the Class Period you may
move the Court no later than March 14, 2016 to ask
the Court to appoint you as lead plaintiff if you meet certain
legal requirements. 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 Howard G. Smith,
Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike,
Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215)
638-4847, toll-free at (888) 638-4847, or by email
to howardsmith@howardsmithlaw.com, or visit our website at
http://www.howardsmithlaw.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/20160114006246/en/
Law Offices of Howard G. SmithHoward G. Smith,
Esquire215-638-4847888-638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.com
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