SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP reminds investors of the upcoming deadline to move for appointment as lead plaintiff in the class action that has been filed on behalf of investors who purchased or otherwise acquired the stock of iRobot Corporation (“iRobot” or the ‘Company”) (NASDAQ: IRBT) between November 21, 2016 and October 22, 2019, inclusive of (The “Class Period”).
If you purchased or otherwise acquired the common stock of iRobot during the Class Period, you may move the Court for appointment as lead plaintiff by no later than December 23, 2019. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions.
iRobot investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
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.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
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