Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against GoPro, Inc.
Oklahoma City, OK (November 29, 2016) – On November 16, 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 September 19, 2016 through November 4, 2016. More specifically, this litigation was filed because 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: (i) GoPro's Karma drones were prone to losing power midflight, causing them to fall out of the sky; (ii) the Company had thus significantly overstated the utility of and likely customer demand for the Karma drone; (iii) the foregoing issue, when publicly known, would necessitate a costly recall of the Company's Karma drones; and (iv) as a result, GoPro's public statements were materially false and misleading at all relevant times.
On November 3, 2016, shortly before the market closed, the Company issued a press release and filed a Form 8-K with the SEC announcing the Company's financial and operating results for the quarter ended September 30, 2016. Among other information, the 8-K provided revenue guidance for 2016 in the range of $1.25 billion and $1.3 billion, which was a significant decrease from the revenue guidance of $1.35 billion and $1.5 billion that the Company had provided in reporting its financial and operating results for the previous quarter.
On November 8, 2016, the Company announced the recall of the approximately 2,500 Karma drones purchased by consumers since October 23, 2016, advising that the Company had discovered that Karma units were prone to losing power during operation. On this news, the Company’s share price fell $0.45 to close at $10.41 on November 9, 2016.
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 Tuesday, January 17, 2017 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 email@example.com, 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 Tue, November 29, 2016
by Robin Hester filed under