Law Offices of Frank R. Cruz Encourages iRobot Corporation (IRBT) Investors To Inquire About Securities Fraud Class Action
Law Offices of Frank R. Cruz Encourages iRobot Corporation (IRBT) Investors To Inquire About Securities Fraud Class Action
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IF YOU SUFFERED A LOSS ON YOUR iROBOT CORPORATION (IRBT) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@frankcruzlaw.com, by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.
What Happened?
On March 12, 2025, iRobot released its fourth quarter and full year 2024 financial results, reporting a loss of $2.06 per share on revenue of $172 million, representing a 44% year-over-year decline and stating that 'there can be no assurance that [iRobot's] new product launches will be successful due to potential factors, including, but not limited to consumer demand, competition, macroeconomic conditions, and tariff policies.' Accordingly, '[g]iven these uncertainties and the implication they may have on the Company's financials, there is substantial doubt about the Company's ability to continue as a going concern for a period of at least 12 months from the date of the issuance of its consolidated 2024 financial statements.'
On this news, iRobot's stock price fell $3.255, or 51.6%, over two consecutive trading days, to close at $3.055 per share on March 13, 2025, thereby injuring investors.
What Is The Lawsuit About?
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) iRobot overstated the extent to which the Restructuring Plan would help the Company maintain stability after the termination of the Amazon Acquisition; (2) as a result, it was unlikely that iRobot would be able to profitably operate as a standalone company; (3) accordingly, there was substantial doubt about the Company's ability to continue as a going concern; 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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