Shareholder rights law firm Robbins LLP is investigating whether certain officers and directors of iRobot Corp. (NASDAQ: IRBT) breached their fiduciary duties between November 21, 2016 and the present. iRobot designs, builds, and sells robots for the consumer market worldwide.
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iRobot Corp. (IRBT) Accused of Channel-Stuffing
Following iRobot's acquisition of two major industry distributors, iRobot reported explosive, double-digit revenue growth, with its officers and directors attributing its strong performance to growing demand for the Roomba line of products, expanded gross margin, and technological innovation. iRobot's revenue may have actually been the result of the Company's channel-stuffing to artificially boost its sales and revenue numbers. On April 23, 2019, the Company announced shockingly disappointing quarterly revenue results below analyst expectations and surging inventory levels. Then, on July 23, 2019, the Company drastically slashed its full-year earnings forecast. Finally, on October 22, 2019, iRobot cut its high end of its revenue expectations for the year, rolled back price increases due to a "suboptimal" customer response, and increased inventory levels yet again. Following these disclosures, iRobot's stock price fell a total of $81.51, or 62%, to close at $49.06.
iRobot Corp. (IRBT) Shareholders Have Legal Options
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