SAN DIEGO, Feb. 4, 2016 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/gopro/) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of GoPro, Inc. ("GPRO") (NASDAQ: GPRO) securities during the period between July 21, 2015 and January 13, 2016 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from January 14, 2016. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Shawn A. Williams or David C. Walton of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org or email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/gopro/. 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.
The complaint charges GPRO and certain of its officers and directors with violations of the Securities Exchange Act of 1934. GPRO is a consumer electronics company primarily selling mountable, wearable cameras and related accessories designed for active or challenging physical environments, including, for example, cameras mounted on musical instruments during concerts or worn by athletes during sporting events.
GPRO went public in June 2014, and in November 2014, GPRO commenced a secondary offering of its common stock, issuing approximately 10.3 million additional shares at $75 per share.
The complaint alleges that during the Class Period, defendants issued false and misleading statements concerning the Company's current financial condition and future revenue and earnings prospects, including the strength of demand for its traditional HERO model camera products and its new HERO Session model cameras. These false and misleading statements caused the Company's securities to trade at artificially inflated prices during the Class Period, with its stock price reaching a high of $64.74 per share on August 10, 2015.
On October 28, 2015, the Company announced third quarter 2015 financial results that badly missed the Company's revenue and earnings guidance by up to $45 million and $0.07, respectively. The Company explained that the shortfall was the result of weak sales of its new HERO Session line of cameras, which was priced too high, and unfavorable sales trends, which had begun in July 2015. In addition, GoPro's inventory had increased by more than $70 million in the quarter. On this news, the price of the Company's stock fell from a close of $30.21 per share on October 28, 2015 to a close of $25.62 per share on October 29, 2015.
On December 4, 2015, the Company cut the price of its key product, HERO4 Session, to $199.00 from $299.00, the second price cut since the product's release in July 2015. Then on January 13, 2016, GPRO announced its preliminary financial results for its 2015 fourth quarter, which missed analysts' consensus estimates by $84 million. In addition, GPRO announced that it would cut its workforce by 7% and take a $30 million charge to account for excess inventory, among other things. These January 13, 2016 disclosures caused the price of GPRO stock to decline from a close of $14.61 per share on January 13, 2016 to a close of $12.48 per share on January 14, 2016, a decline of 80% from the stock's Class Period high price and more than 83% from the secondary offering price.
Plaintiff seeks to recover damages on behalf of all purchasers of GPRO securities during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com/cases/gopro/ for more information.
SOURCE Robbins Geller Rudman & Dowd LLP