New York, New York--(Newsfile Corp. - December 6, 2019) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in iRobot Corporation (NASDAQ: IRBT) ("iRobot" or the "Company") of the December 23, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in iRobot stock or options between November 21, 2016 and October 22, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/IRBT. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased iRobot common stock between November 21, 2016 and October 22, 2019 (the "Class Period"). The case, Miramar Firefighters Pension Fund v. iRobot Corporation et al., No. 19-cv-09837 was filed on October 24, 2019, and has been assigned to Judge Jed S. Rakoff.
Throughout the Class Period, iRobot reported explosive, double-digit revenue growth, which it attributed to increasing demand for its Roomba products, expanded gross margin due to distributor acquisitions, greater brand awareness and technological innovation. The complaint alleges that iRobot was engaging in channel-stuffing in order to inflate its sales and revenues figures, and had acquired two of its largest distributors in order to facilitate and conceal this deceptive practice. As a result of these misrepresentations, iRobot shares traded at artificially inflated prices throughout the Class Period.
In a series of disclosures between April 23, 2019 and October 22, 2019, iRobot continuously lowered its revenue guidance while it increased its reported days in inventory figure. As these disclosures became public, iRobot's share price fell from $130.57 per share on April 23, 2019 to a closing price of $49.06 on October 23, 2019-a drop of over 60%.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding iRobot's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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