Fitbit investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Fitbit manufactures and provides wearable fitness-tracking devices worldwide. The company’s main products are wrist bands and clippable devices that purport to monitor a user’s fitness activity by tracking his/her health and fitness activities. Among the company’s products are Fitbit Charge HR (“Charge HR”), a wireless heart rate and activity wristband, and Fitbit Surge (“Surge”), a fitness watch that consists of a GPS watch, heart rate tracker, activity tracker, and smartwatch. Fitbit Inc. sells its products primarily through retailers and distributors.
The complaint alleges that throughout the Class Period, the defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (i) Fitbit’s heart rate monitoring technology was inaccurate and did not consistently deliver accurate heart rate readings during exercise; (ii) the inaccuracy of Fitbit’s heart rate monitoring technology posed serious health risks to users of Fitbit’s products; and (iii) as a result of the foregoing, Fitbit’s public statements were materially false and misleading at all relevant times.
The Class Period commences on June 18, 2015, when Fitbit completed its initial public offering (“IPO”), issuing 36,575,000 shares and raising net proceeds of approximately $732 million.
According to the complaint, on January 6, 2016, a class action lawsuit was reported as filed against Fitbit in the United States District Court for the Northern District of California, alleging that the heart rate monitoring systems on the company’s Charge HR and Surge devices were dangerously inaccurate and posed serious health risks to users (McLellan et al. v. Fitbit, Inc., 3:16-cv-00036 (N.D. Cal. Jan. 5, 2016). The claims against Fitbit include violations of California's Unfair Competition Law and Consumers Legal Remedies Act, common law fraud, and unjust enrichment.
Following this news, Fitbit’s stock fell $1.40, or 5.8%, to close at $22.90 on January 6, 2016
If you are a member of the class described above, you may no later than March 11, 2016 , move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706