A Class Action Has Been Filed Against GoPro, Inc. (GPRO) – Announcement from Safirstein Metcalf LLC.
Safirstein Metcalf LLP announces that a class action has been has been filed against GoPro, Inc. (NASDAQ: GPRO) and certain of its officers. The class action is on behalf of a class consisting of investors who purchased or otherwise acquired the securities of GoPro between August 4, 2017 and January 5, 2018, both dates inclusive.
If you purchased or acquired GoPro securities during the class period, and would like more information about the shareholder class action, please use the convenient form on this page or contact Safirstein Metcalf LLP at 1-800-221-0015 or info@SafirsteinMetcalf.com
If you wish to serve as lead plaintiff, you must move the Court no later than March 12, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The Complaint alleges that during the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) demand for the GoPro brand had dramatically declined and retailers were not stocking up for 2017 holiday sales to the extent GoPro had budgeted for; (ii) demand for GoPro’s Karma drones was sufficiently weak that the Company could no longer afford to manufacture and sell them profitably; (iii) the Company would be forced to dramatically slash prices on its newly launched HERO6 Black and its dated HERO5 Black and HERO5 Session cameras, as well as its Karma drone, during the quarter and would need to further slash HERO6 prices in January 2018; and (iv) as a result of the foregoing, GoPro was not on track to achieve the financial results it had led the market to believe it was on track to achieve during the Class Period.
On Monday, January 8, 2018, before the open of trading, GoPro issued a press release filed on Form 8-K with the SEC entitled “GoPro Announces Preliminary Fourth Quarter 2017 Results,” revealing that its fourth quarter 2017 sales were $340 million, significantly lower than analysts’ projections of over $470 million. GoPro blamed the results on the slashing of prices for its HERO6 Black, HERO5 Black, and HERO5 Session cameras, as well as its Karma drone, during the quarter, which the Company had been forced to engage in to move inventory and which had a negative $80 million impact on revenues. GoPro also disclosed it was cutting more than one-fifth of its workforce and exiting the drone market altogether, requiring it to dump the rest of its Karma drone inventory. GoPro had cut the price for its HERO5 Black camera in December 2017 and announced it was now reducing the price of its newly launched HERO6 model from $499 to $399. The workforce reduction would cost GoPro $33 million, mainly in severance costs.
Following this news, GoPro’s stock price declined, to close at $6.56 per share, falling over 12%.
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