GoPro investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, GoPro develops and sells mountable and wearable cameras and accessories in the United States and internationally. The company’s cameras are designed primarily for filming while immersed in action, such as outdoor or extreme sports. On October 23, 2016, following months of delays, GoPro released the Karma drone, a compact, foldable drone designed for aerial photography using GoPro’s cameras.
The Class Period commences on September 19, 2016, when GoPro announced the imminent release of the company’s Karma drone at a product launch event, following months of delays.
According to the complaint, on November 3, 2016, shortly before the market closed, GoPro issued a press release and filed a Current Report on Form 8-K with the SEC providing revenue guidance for 2016 in the range of $1.25 billion to $1.3 billion—a significant decrease from the revenue guidance of $1.35 billion to $1.5 billion that the company had provided in reporting its financial and operating results for the previous quarter, and consistent with an anticipated recall of the company’s Karma drone. Following this news, GoPro’s share price fell $0.90, or 7.01%, to close at $11.94 on November 3, 2016, and fell an additional $0.78, or 6.53%, to close at $11.16 on November 4, 2016.
Then, on November 8, 2016, post-market, GoPro announced the recall of the approximately 2,500 Karma drones purchased by consumers since the product’s release, advising that the company had discovered that Karma units were prone to losing power during operation. Following this news, GoPro’s share price fell $0.45, or 4.14%, to close at $10.41 on November 9, 2016.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) GoPro’s Karma drones were prone to losing power midflight, causing them to fall out of the sky; (ii) the company had thus significantly overstated the utility of and likely customer demand for the Karma drone; (iii) the foregoing issue, when publicly known, would necessitate a costly recall of the company’s Karma drones; and (iv) as a result, GoPro’s public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than January 17, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
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