NEW YORK, Nov. 17, 2016 /PRNewswire/ -- Attorney
Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies
investors that a class action lawsuit has been filed against GoPro,
Inc. ("GoPro" or the "Company") (NASDAQ: GPRO) and certain of its
officers, and is on behalf of shareholders who purchased or
otherwise acquired GoPro securities between September 19, 2016 and November 4, 2016, both dates inclusive (the
"Class Period"). Such investors are advised to join this case
by visiting the firm's site: http://www.bgandg.com/gpro.
This class action seeks to recover damages against Defendants
for alleged violations of the federal securities laws under the
Securities Exchange Act of 1934 (the "Exchange Act").
GoPro is an American technology company that develops and
manufactures wearable action cameras and develops its own apps and
video-editing software. On October 23,
2016, after months postponements, GoPro announced its Karma
drone, a compact, foldable drone designed for aerial photography
using GoPro's cameras.
The Complaint alleges that throughout the Class Period,
Defendants made materially false and misleading statements
regarding the Company's business, operational and compliance
policies. Specifically, Defendants made false and/or misleading
statements and/or failed to disclose that: (1) GoPro's Karma drones
likely to lose power midflight, and fall out of the sky; (2)
GoPro had knowingly overstated the efficacy of the Karma drone and
thus its customer demand for the new product; (3) once this issue
was made public, it would require a pricey recall of Karma drones;
and (4) consequently, GoPro's public statements were materially
false and misleading at all relevant times.
On November 3, 2016, GoPro issued
a press release and filed a Form 8-K Current Report with the SEC
announcing GoPro's financial and operating results for the quarter
ended September 30, 2016 (the "Q3
2016 8-K"). The Q3 2016 8-K stated revenue guidance for 2016 in the
range of $1.25 billion and
$1.3 billion, a substantial loss from
the projected revenue guidance of $1.35
billion and $1.5 billion that
GoPro stated in its previous filing. However, this decrease in
revenue was expected with the recall of its Karma drones. Following
this news, GoPro stock dropped $0.90
per share, or 7.01%, to close at $11.94 on November 3,
2016, and dropped another $0.78 per share, or 6.53%, to close at
$11.16 on November 4, 2016.
On November 8, 2016, GoPro
announced its recall of all of its Karma drones. GoPro said "in a
very small number of cases, Karma units lost power during
operation." GoPro also revealed disappointing third-quarter 2016
financial results on November 4,
2016. Following this news, GoPro dropped $0.45, or 4.14%, to close at $10.41on November 9,
2016.
A class action lawsuit has already been filed. If you wish to
review a copy of the Complaint you can visit the firm's site:
www.bgandg.com/gpro or you may contact Peretz Bronstein, Esq. or his Investor Relations
Analyst, Yael Hurwitz of Bronstein,
Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss
in GoPro you have until January 17,
2017 to request that the Court appoint you as lead
plaintiff. Your ability to share in any recovery doesn't
require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation
boutique. Our primary expertise is the aggressive pursuit of
litigation claims on behalf of our clients. In addition to
representing institutions and other investor plaintiffs in class
action security litigation, the firm's expertise includes general
corporate and commercial litigation, as well as securities
arbitration. Attorney advertising. Prior results do not
guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
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