GoPro investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, GoPro is a camera (or “capture device”) company, and generates substantially all of its revenue from the sale of cameras and accessories. The Company’s core product is the HERO line of capture devices, the first HD version of which was introduced in 2009.
The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose adverse material information regarding the Company's business and prospects, including that defendants failed to disclose: (1) that the Company was experiencing weak sales of its HERO line of cameras throughout the Class Period; (2) that the Company was experiencing weak HERO4 Session sales at the time the third Quarter guidance was announced; (3) that the Company’s third quarter 2015 guidance was based on the assumption that GoPro would be able to sell a significant additional amount of HERO4 Session cameras; (4) that the Company’s third and fourth quarter 2015 guidance was inflated and unrealistic; and (5) that, as a result of the foregoing, Defendants’ statements about GoPro’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On October 28, 2015, the Company issued a press release announcing poor third quarter 2015 results. Specifically, GoPro reported revenue of $400 million, far below the company’s own guidance of $430 million to $445 million. On the same day, during the Company’s quarterly earnings conference call with investors and analysts, GoPro CEO, Nick Woodman, attributed the Company’s poor performance, in part, to week sales related to the Company’s HERO4 Session camera. Specifically addressing the Company’s guidance miss, Woodman stated “our guidance going into the quarter was actually for a significant additional amount of Session to ship. . . . Session didn't sell through as well as we anticipated . . . .” On this news, the Company’s shares fell $4.59, or more than 15%, to close at $25.62 per share on October 29, 2015.
On January 13, 2016, GoPro issued a press release announcing preliminary fourth quarter 2015 revenue of $435 million, falling below the Company’s guidance of $500 million to $550 million. GoPro also announced that it planned to reduce its workforce by approximately 7% and incur approximately $5 million to $10 million in restructuring costs, substantially all of which relates to severance costs. The Company attributed its dismal fourth quarter results to “lower than anticipated sales of its capture devices” and “a $21 million reduction for price protection related charges resulting from the HERO4 Session repricing in December.”
Following this news, shares of GoPro fell as much as $4.08 per share, or 27.9%, to lows of $10.52 per share during after hours trading on January 13, 2016.
If you are a member of the class described above, you may no later than March 14, 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