Securities fraud class action litigation has been filed on behalf of investors who purchased or otherwise acquired the stock of iRobot Corporation (“iRobot” or the “Company”) (Nasdaq: IRBT). If you purchased or otherwise acquired iRobot stock between November 21, 2016 and October 22, 2019, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than December 23, 2019.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
iRobot investors may choose to have Lieff Cabraser review their claim by completing the contact form below. You can also call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358 to discuss the litigation.
Background on the iRobot Securities Class Litigation
iRobot is a global consumer robot company that designs and builds robots to assist with household tasks. iRobot’s most popular product is its Roomba line of autonomous robotic vacuum cleaners.
The actions allege that, throughout the Class Period, iRobot reported double-digit revenue growth, which it attributed to increasing demand for its Roomba products, and expanded gross margin due to distributor acquisitions, greater brand awareness and technological innovation. Unbeknownst to investors, 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.
On April 23, 2019, after the close of trading, iRobot announced that its quarterly revenues were below analyst expectations and revealed surging inventory levels. Specifically, iRobot reported days in inventory (“DII”) of 140 for the three months ended March 30, 2019, compared to DII of 101 for the same period in the year prior. Inventory also rose to $181 million as of March 30, 2019, up from $112 million in April 2018. Following this news, the price of iRobot’s stock fell $30.15 per share, or more than 23%, to close at $100.42 per share on April 24, 2019.
On July 23, 2019, after the close of trading, iRobot cut its full-year fiscal 2019 revenue guidance as well as its earnings per share guidance. Following this news, iRobot’s stock price fell from $15.12 per share, or nearly 17%, to close at $74.51 per share on July 24, 2019.
On October 22, 2019, after the close of trading, iRobot reported its third quarter 2019 financial results and cut the high end of its revenue expectations for the year. iRobot said it rolled back price increases after a “suboptimal” customer response. In addition, iRobot reported increased inventory levels once again, with third quarter 2019 ending inventory of $248 million or 149 DII compared to the $161 million or 113 DII a year prior. Following this news, iRobot’s stock price fell $4.97 per share, or 9.2%, to close at $49.06 per share on October 23, 2019.
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