A class action lawsuit was filed against iRobot Corporation (NASDAQ:IRBT) on March 8, 2024. The plaintiffs (shareholders) alleged that they bought IRBT stock at artificially inflated prices between August 5, 2022 and January 26, 2024 (Class Period) and are now seeking compensation for their financial losses. Investors who bought IRBT stock during that period can learn about joining the lawsuit here: https://zlk.com/pslra-1/irobot-lawsuit-submission-form?wire=16
iRobot is a technology company focused on creating home robot cleaning products. Its robot vacuum cleaner Roomba, built 20 years ago, was considered a pioneer in its category.
The plaintiffs maintain that the company and two of its current and/or former senior officers deceived investors by repeatedly lying and withholding vital information about IRBT’s planned acquisition and subsequent termination of the deal by e-commerce behemoth Amazon.com (NASDAQ:AMZN) during the Class Period.
The information became clear in a series of events between June 22, 2023, and January 29, 2024. During this period, the European Commission (EC) began a full-fledged investigation into the merger and cautioned that the deal could be blocked. Finally, the two parties mutually agreed to terminate the deal on January 29, 2024. Moreover, iRobot announced its CEO’s resignation and workforce reduction of 31%.
It is worth noting that iRobot repeatedly stated during the Class Period that the acquisition by Amazon was proceeding at a positive pace and the deal was expected to close within the timeline, without the EC’s interference.
As per the class action lawsuit, iRobot caused IRBT stock to trade at artificially inflated prices by knowingly and recklessly omitting truthful information about its business prospects.
Notably, between June 22, 2023 and January 29, 2024, IRBT stock plunged 68.7%, causing massive damage to shareholders’ returns.
