LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired iRobot Corporation (“iRobot” or the “Company”) (NASDAQ: IRBT) securities between August 5, 2022 and January 26, 2024, inclusive (the “Class Period”). iRobot investors have until May 7, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On June 22, 2023, news outlets reported that the European Commission (“EC”) was planning a full-scale investigation into iRobot’s August 2022 merger with Amazon.com, Inc. On this news, iRobot’s stock price fell $4.12, or 8.3%, to close at $45.41 per share on June 22, 2023, thereby injuring investors.
Then, on November 27, 2023, the EC announced that it had “informed Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market” for robot vacuum cleaner (“RVC”) products. Specifically, the EC stated its concern “that Amazon may restrict competition in the European Economic Area (‘EEA’)-wide and/or national markets for RVCs, by hampering rival RVC suppliers’ ability to effectively compete.” On this news, iRobot’s stock price fell $7.13, or 17.2%, to close at $34.35 per share on November 27, 2023.
Then, on January 10, 2024, it was reported that Amazon did not offer concessions to the EC regarding concerns about the Merger. On this news, iRobot’s stock price fell $7.33, or 19.8%, to close at $29.75 per share on January 10, 2024.
Then, on January 18, 2024, the Wall Street Journal reported that “[t]he European Union’s competition watchdog intends to block Amazon’s $1.7 billion bid to purchase Roomba maker iRobot,” citing “people familiar with the matter.” Additionally, on January 19, 2024, Bloomberg reported that the US Federal Trade Commission was also planning to block the Merger. On this news, iRobot’s stock price fell $6.36, or 26.9%, to close at $17.26 per share on January 19, 2024.
Then, on January 29, 2024, Amazon and iRobot announced that they would be terminating the Merger. iRobot also disclosed that its Chief Executive Officer and Chairman of the Board of Directors would be resigning, and that it was planning to cut approximately 31% of its workforce. On this news, iRobot’s stock price fell $1.49, or 8.8%, to close at $15.50 per share on January 29, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Merger would place Amazon in a sufficiently dominant position in the market for RVCs that U.S. and European antitrust regulators were unlikely to approve the Merger; (2) iRobot had conducted inadequate due diligence into the Merger and/or ignored significant risks weighing against the likelihood of regulatory approval; (3) as a result of all the foregoing, iRobot overstated the likelihood for successfully completing the Merger; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased iRobot securities during the Class Period, you may move the Court no later than May 7, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased iRobot securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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