NEW YORK, Nov. 17, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against GoPro, Inc. ("GoPro" or the "Company") (NASDAQ: GPRO) and certain of its officers, and is on behalf of shareholders who purchased or otherwise acquired GoPro securities between September 19, 2016 and November 4, 2016, both dates inclusive (the "Class Period"). Such investors are advised to join this case by visiting the firm's site: http://www.bgandg.com/gpro.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
GoPro is an American technology company that develops and manufactures wearable action cameras and develops its own apps and video-editing software. On October 23, 2016, after months postponements, GoPro announced its Karma drone, a compact, foldable drone designed for aerial photography using GoPro's cameras.
The Complaint alleges that throughout the Class Period, 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: (1) GoPro's Karma drones likely to lose power midflight, and fall out of the sky; (2) GoPro had knowingly overstated the efficacy of the Karma drone and thus its customer demand for the new product; (3) once this issue was made public, it would require a pricey recall of Karma drones; and (4) consequently, GoPro's public statements were materially false and misleading at all relevant times.
On November 3, 2016, GoPro issued a press release and filed a Form 8-K Current Report with the SEC announcing GoPro's financial and operating results for the quarter ended September 30, 2016 (the "Q3 2016 8-K"). The Q3 2016 8-K stated revenue guidance for 2016 in the range of $1.25 billion and $1.3 billion, a substantial loss from the projected revenue guidance of $1.35 billion and $1.5 billion that GoPro stated in its previous filing. However, this decrease in revenue was expected with the recall of its Karma drones. Following this news, GoPro stock dropped $0.90 per share, or 7.01%, to close at $11.94 on November 3, 2016, and dropped another $0.78 per share, or 6.53%, to close at $11.16 on November 4, 2016.
On November 8, 2016, GoPro announced its recall of all of its Karma drones. GoPro said "in a very small number of cases, Karma units lost power during operation." GoPro also revealed disappointing third-quarter 2016 financial results on November 4, 2016. Following this news, GoPro dropped $0.45, or 4.14%, to close at $10.41on November 9, 2016.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/gpro or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in GoPro you have until January 17, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC