Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against GoPro, Inc.
Oklahoma City, OK (February 8, 2016) – On January 13, 2016, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against GoPro, Inc. (NASDAQ: GPRO). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is July 21, 2015 through January 13, 2016. More specifically, this litigation was filed during the Class Period the Company issued materially false and misleading statements to investors and/or failed to disclose that: (1) GoPro was experiencing weak sales of its HERO line of cameras; (2) GoPro was experiencing weak HERO4 Session sales at the time the third quarter guidance was announced; (3) GoPro’s third quarter 2015 guidance was based on the assumption that GoPro would be able to sell a significant additional amount of HERO4 Session cameras; (4) GoPro’s third and fourth quarter 2015 guidance was inflated and unrealistic; and (5) as a result, Defendants’ statements about GoPro’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
On January 13, 2016, the Company issued a press release announcing preliminary fourth quarter 2015 revenue of $435 million, well below the Company’s guidance of $500 million to $550 million. The Company attributed its fourth quarter results to “lower than anticipated sales of its capture devices” and a “$21 million reduction for price protection related charges resulting from the HERO4 Session repricing in December. On this news, the Company’s shares fell $4.08 per share to closed at $10.52 per share.
Plaintiff seeks to recover damages on behalf of all GoPro, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, March 14, 2016 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Mon, February 8, 2016
by Robin Hester filed under