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SAN FRANCISCO, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Hagens Berman reminds investors in iRobot Corporation (NASDAQ: IRBT) of a recently filed federal securities class action against the Company and its senior officials. The firm urges IRBT investors who have suffered losses in excess of $100,000 to submit their losses now to learn if they qualify to recover their investment losses.
iRobot Corporation (IRBT) Securities Class Action:
The Complaint alleges that, throughout the Class Period, iRobot 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 was engaging 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 market learned the truth about iRobot’s fraud 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. All told, these disclosures caused iRobot shares to decline precipitously, wiping out significant shareholder value.
“We’re focused on investors’ losses and whether the company inflated its reported revenues,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of IRBT and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding iRobot should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email IRBT@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 510-725-3000