NEW YORK, Nov. 25, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against GoPro, Inc. ("GoPro" or the "Company")(NASDAQ: GPRO) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 16-cv-06654, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired GoPro between September 19, 2016 and November 4, 2016, both dates inclusive (the "Class Period"), seeking to recover compensable damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased GoPro during the Class Period, you have until January 17, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
GoPro develops and sells mountable and wearable cameras and accessories in the United States and internationally. The Company's cameras are designed primarily for filming while immersed in action, such as outdoor or extreme sports. On October 23, 2016, following months of delays, GoPro released the 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: (i) GoPro's Karma drones were prone to losing power midflight, causing them to fall out of the sky; (ii) the Company had thus significantly overstated the utility of and likely customer demand for the Karma drone; (iii) the foregoing issue, when publicly known, would necessitate a costly recall of the Company's Karma drones; and (iv) as a result, GoPro's public statements were materially false and misleading at all relevant times.
On November 3, 2016, shortly before the market closed, GoPro issued a press release and filed a Current Report on Form 8-K with the SEC announcing the Company's financial and operating results for the quarter ended September 30, 2016 (the "Q3 2016 8-K"). Among other information, the Q3 2016 8-K provided revenue guidance for 2016 in the range of $1.25 billion and $1.3 billion—a significant decrease from the revenue guidance of $1.35 billion and $1.5 billion that the Company had provided in reporting its financial and operating results for the previous quarter, and consistent with an anticipated recall of the Company's Karma drone.
On this news, GoPro's share price fell $0.90, or 7.01%, to close at $11.94 on November 3, 2016, and fell an additional $0.78, or 6.53%, to close at $11.16 on November 4, 2016.
On November 8, 2016, post-market, GoPro announced the recall of the approximately 2,500 Karma drones purchased by consumers since the product's release, advising that the Company had discovered that Karma units were prone to losing power during operation.
On this news, GoPro's share price fell $0.45, or 4.14%, to close at $10.41 on November 9, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP