Bernstein Litowitz Berger & Grossmann Updates iRobot Corporation (IRBT) Investors on Judge Assignment in Securities Fraud Class Action Lawsuit

NEW YORK, Oct. 30, 2019 /PRNewswire/ -- On October 24, 2019, prominent investor rights law firm Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") announced the filing of the first and only securities fraud class action lawsuit against iRobot Corporation ("iRobot" or the "Company") (NASDAQ: IRBT) on behalf of investors in iRobot common stock between November 21, 2016 and October 22, 2019, inclusive (the "Class Period").  The case, captioned Miramar Firefighters Pension Fund v. iRobot Corporation, No. 1:19-cv-09837, is pending in the U.S. District Court for the Southern District of New York and has been assigned to the Honorable Jed S. Rakoff.  

If you have pertinent information concerning this matter or are a shareholder who has suffered a material loss on your iRobot investment, please contact:

Michael Blatchley
(212) 554-1281  
[email protected].
Class Period:  Nov. 21, 2016 – Oct. 22, 2019
Lead Plaintiff Deadline:  Dec. 23, 2019

The complaint filed by BLB&G on behalf of iRobot investors is based on the firm's extensive, proprietary investigation and a careful evaluation of the merits of this case. A copy of the complaint is available on BLB&G's website by clicking here.

Investors who purchased iRobot common stock during the Class Period may, no later than December 23, 2019, seek to be appointed Lead Plaintiff for the Class.   

iRobot's Alleged Fraud

Based on BLB&G's investigation, the complaint alleges that, throughout the Class Period, the Company 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.

In reality, iRobot engaged 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.

The truth about iRobot's fraud was revealed through a series of disclosures between April 23, 2019 and October 22, 2019, when the Company, unable to continue its channel-stuffing scheme, announced disappointing quarterly revenues and poor financial guidance.  These disclosures caused iRobot shares to decline precipitously, wiping out significant shareholder value.

If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than December 23, 2019, which is the first business day on which the U.S. District Court for the Southern District of New York is open that is 60 days after the date that notice of the pendency of this action was first published on October 24, 2019.  Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice.  Members may also choose to do nothing and remain part of the proposed Class.

About BLB&G

BLB&G is widely recognized as one of the leading law firms worldwide advising institutional investors on issues related to corporate governance, shareholder rights, and securities litigation.  Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity and pioneered the use of the litigation process to achieve precedent-setting governance reforms. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering over $33 billion on behalf of defrauded investors.  In the Southern District of New York, BLB&G's significant recoveries on behalf of investors include over $6.2 billion in the WorldCom litigation, $2.425 billion in the Bank of America litigation, and $1.07 billion in the Nortel Networks litigation.  More information about the firm can be found online at www.blbglaw.com.

CONTACT:
Michael D. Blatchley
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor
New York, New York 10020
(212) 554-1281
[email protected] 

SOURCE Bernstein Litowitz Berger & Grossmann LLP

Related Links

http://www.blbglaw.com