Robbins Arroyo LLP: GoPro, Inc. (GPRO) Misled Shareholders According to a Recently Filed Class Action
January 22 2016 - 3:38PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed in the U.S. District Court for the
Northern District of California. The complaint alleges that
officers and directors of GoPro, Inc. (NASDAQGS: GPRO) violated the
Securities Exchange Act of 1934 between July 21, 2015 and January
13, 2016, by making materially false and misleading statements
about GoPro's business prospects. GoPro is a camera company that
develops hardware and software solutions associated with capturing,
managing, sharing, and enjoying engaging content. The company's
core product is the HERO line of capture devices. It introduced the
first HD version in 2009, and has since launched several models
with more advanced features.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/gopro-inc
GoPro Accused of Failing to Disclose Weak Sales For Its
Capture Devices
According to the complaint, GoPro failed to disclose that it was
experiencing weak sales of its HERO line of cameras, and that its
third quarter 2015 guidance was based on the assumption that GoPro
would be able to sell a significant additional amount of HERO4
Session cameras. Thus, the complaint alleges, the company's third
and fourth quarter 2015 guidance was inflated and unrealistic. On
July 6, 2015, GoPro launched the HERO4 Session, touting it as "the
smallest, lightest, most convenient GoPro yet," priced at $399.99.
On July 21, 2015, the company announced its guidance for the third
quarter 2015, anticipating revenue between $430 million and $435
million.
Then, on October 28, 2015, the company issued a press release
announcing poor third quarter 2015 results, reporting revenue of
only $400 million, far below the company's guidance. In a
conference call with investors, a GoPro official admitted that the
company initially priced the product too high causing it to lower
the price to $299, and that it underfunded marketing which impacted
demand. On December 4, 2015, the company announced it was lowering
the price of the HERO4 Session even further to $199. Then, on
January 13, 2016, GoPro issued a press release, stating that its
fourth quarter 2015 revenue of $435 million fell below the
company's guidance of $500 million to $550 million, it was reducing
its workforce by approximately 7%, and that it was incurring
approximately $5 million to $10 million in restructuring costs.
GoPro attributed the cause of the shortfall again to lower than
anticipated sales, and price protection related charges from the
product's repricing. On this news, GoPro stock fell $4.08 per
share, or 27.9%, to lows of $10.52 per share during after-hours
trading on January 13, 2016.
GoPro Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160122005941/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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