Robbins Arroyo LLP: GoPro, Inc. (GPRO) Misled Shareholders According to a Recently Filed Lawsuit
December 28 2016 - 3:10PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
lawsuit was filed against GoPro, Inc. (NASDAQGS: GPRO) in the U.S.
District Court for the Northern District of California. The
complaint is brought on behalf of all purchasers of GoPro
securities between September 19, 2016 and November 4, 2016, for
alleged violations of the Securities Exchange Act of 1934 by
GoPro's officers and directors. GoPro develops and sells mountable
and wearable cameras and accessories in the United States and
internationally.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/gopro-inc-dec-2016
GoPro Accused of Overinflating the Capabilities of its Karma
Drone
According to the complaint, on September 19, 2016, GoPro touted
the impending release of its Karma drone at a product launch event,
stating that it "packs Hollywood-caliber aerial, handheld and
gear-mounted image stabilization into a backpack for $799." A GoPro
official subsequently promoted the drone in an interview with
Bloomberg Markets, stating that it is expected to "dramatically
improve the quality of footage that film and television producers
are able to capture with GoPros," that it is capable and versatile,
and that the company has a "terrific installed user base that's
going to get a lot of functionality and use out of Karma." On the
news of Karma's upcoming launch, GoPro's stock increased 2.34% to
close at $15.31 on September 19, 2016.
However, the complaint alleges that GoPro officials failed to
disclose that: (1) its Karma drones were prone to losing power
midflight, causing them to fall out of the sky; (2) the company had
thus significantly overstated the utility of and likely customer
demand for the Karma drone; and (3) the issue would necessitate a
costly recall of Karma drones. On November 3, 2016, GoPro announced
that revenue guidance for 2016 was in the range of $1.25 billion to
$1.3 billion—a significant decrease from the guidance of $1.35
billion to $1.5 billion that the company had provided in reporting
its financial and operating results for the previous quarter. On
November 8, 2016, GoPro announced the recall of approximately 2,500
Karma drones, citing that the units were prone to losing power
during operation. On this news, GoPro's stock fell nearly 19% to
close at $10.41 per share on November 9, 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/20161228005397/en/
Robbins Arroyo LLPDarnell R. Donahue619-525-3990 or Toll Free
800-350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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