SAN DIEGO, Feb. 4, 2016 /PRNewswire/ -- Robbins Geller
Rudman & Dowd LLP ("Robbins Geller")
(http://www.rgrdlaw.com/cases/gopro/) today announced that a class
action has been commenced in the United States District Court for
the Northern District of California on behalf of purchasers of GoPro,
Inc. ("GPRO") (NASDAQ: GPRO) securities during the period between
July 21, 2015 and January 13, 2016 (the "Class Period").
![rgrd_llp_logo rgrd_llp_logo](https://photos.prnewswire.com/prnvar/20150415/198876LOGO)
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from January
14, 2016. If you wish to discuss this action or have
any questions concerning this notice or your rights or interests,
please contact plaintiff's counsel, Shawn A. Williams or David C.
Walton of Robbins Geller at 800/449-4900 or 619/231-1058, or via
e-mail at shawnw@rgrdlaw.com or davew@rgrdlaw.com. If you are
a member of this class, you can view a copy of the complaint as
filed or join this class action online at
http://www.rgrdlaw.com/cases/gopro/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges GPRO and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. GPRO is a consumer electronics company primarily
selling mountable, wearable cameras and related accessories
designed for active or challenging physical environments,
including, for example, cameras mounted on musical instruments
during concerts or worn by athletes during sporting events.
GPRO went public in June 2014, and
in November 2014, GPRO commenced a
secondary offering of its common stock, issuing approximately 10.3
million additional shares at $75 per
share.
The complaint alleges that during the Class Period, defendants
issued false and misleading statements concerning the Company's
current financial condition and future revenue and earnings
prospects, including the strength of demand for its traditional
HERO model camera products and its new HERO Session model
cameras. These false and misleading statements caused the
Company's securities to trade at artificially inflated prices
during the Class Period, with its stock price reaching a high of
$64.74 per share on August 10, 2015.
On October 28, 2015, the Company
announced third quarter 2015 financial results that badly missed
the Company's revenue and earnings guidance by up to $45 million and $0.07, respectively. The Company explained
that the shortfall was the result of weak sales of its new HERO
Session line of cameras, which was priced too high, and unfavorable
sales trends, which had begun in July 2015. In addition,
GoPro's inventory had increased by more than $70 million in the quarter. On this news,
the price of the Company's stock fell from a close of $30.21 per share on October 28, 2015 to a close of $25.62 per share on October 29, 2015.
On December 4, 2015, the Company
cut the price of its key product, HERO4 Session, to $199.00 from $299.00, the second price cut since the product's
release in July 2015. Then on January
13, 2016, GPRO announced its preliminary financial results
for its 2015 fourth quarter, which missed analysts' consensus
estimates by $84 million. In
addition, GPRO announced that it would cut its workforce by 7% and
take a $30 million charge to account
for excess inventory, among other things. These January 13, 2016 disclosures caused the price of
GPRO stock to decline from a close of $14.61 per share on January 13, 2016 to a close of $12.48 per share on January 14, 2016, a decline of 80% from the
stock's Class Period high price and more than 83% from the
secondary offering price.
Plaintiff seeks to recover damages on behalf of all purchasers
of GPRO securities during the Class Period (the "Class"). The
plaintiff is represented by Robbins Geller, which has extensive
experience in prosecuting investor class actions including actions
involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S.
and international institutional investors in contingency-based
securities and corporate litigation. The firm has obtained
many of the largest securities class action recoveries in history
and was ranked first in both the amount and number of shareholder
class action recoveries in ISS's SCAS Top 50 report for
2014. Please visit http://www.rgrdlaw.com/cases/gopro/ for
more information.
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SOURCE Robbins Geller Rudman & Dowd LLP