| COMPANY |
iRobot Corporation |
| COURT |
United States District Court for the District of Massachusetts |
| CASE NUMBER |
1:24-cv-11158-WGY |
| JUDGE |
The Hon. William G. Young |
| CLASS PERIOD |
August 5, 2022 through January 26, 2024 |
| SECURITY TYPE |
Securities |
iRobot investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than May 7, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired iRobot Corporation (“iRobot”) (NASDAQ: IRBT) securities between August 5, 2022 and January 26, 2024, both dates inclusive (the “Class Period”).
Case Background:
On June 22, 2023, news outlets reported that the European Commission (“EC”) was planning a full-scale investigation into iRobot’s August 2022 merger with Amazon.com, Inc. (the “Merger”). On this news, iRobot’s stock price fell $4.12, or 8.3%, to close at $45.41 per share on June 22, 2023.
Then, on November 27, 2023, the EC announced that it had “informed Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market” for robot vacuum cleaner (“RVC”) products. Specifically, the EC stated its concern “that Amazon may restrict competition in the European Economic Area (‘EEA’)-wide and/or national markets for RVCs, by hampering rival RVC suppliers’ ability to effectively compete.” On this news, iRobot’s stock price fell $7.13, or 17.2%, to close at $34.35 per share on November 27, 2023.
On January 18, 2024, The Wall Street Journal reported that “[t]he European Union’s competition watchdog intends to block Amazon’s $1.7 billion bid to purchase Roomba maker iRobot,” citing “people familiar with the matter.” Additionally, on January 19, 2024, Bloomberg reported that the US Federal Trade Commission was also planning to block the Merger. On this news, iRobot’s stock price fell $6.36, or 26.9%, to close at $17.26 per share on January 19, 2024.
Finally, on January 29, 2024, Amazon and iRobot announced that they would be terminating the Merger. iRobot also disclosed that its Chief Executive Officer and Chairman of the Board of Directors would be resigning, and that it was planning to cut approximately 31% of its workforce. On this news, iRobot’s stock price fell $1.49, or 8.8%, to close at $15.50 per share on January 29, 2024.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (1) the Merger would place Amazon in a sufficiently dominant position in the market for RVCs that U.S. and European antitrust regulators were unlikely to approve the Merger; (2) iRobot had conducted inadequate due diligence into the Merger and/or ignored significant risks weighing against the likelihood of regulatory approval; (3) as a result of all the foregoing, iRobot overstated the likelihood for successfully completing the Merger; 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.
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. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
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: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.