A lawsuit was filed on behalf of investors in iRobot Corporation (NASDAQ: IRBT) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 11/06/2019 -- An investor, who purchased shares of iRobot Corporation (NASDAQ: IRBT), filed a lawsuit over alleged violations of Federal Securities Laws by iRobot Corporation.
Investors who purchased shares of iRobot Corporation (NASDAQ: IRBT) have certain options and for certain investors are short and strict deadlines running. Deadline: December 23, 2019. NASDAQ: IRBT investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On April 23, 2019, after the close of trading, iRobot Corporation surprised the market when it announced that quarterly revenues were below analyst expectations and also revealed surging inventory levels. Specifically, iRobot Corporation reported days in inventory ("DII") of 140 for the three months ended March 30, 2019, compared to DII of 101 for the three months ended March 31, 2018. Inventory also rose to $181 million as of March 30, 2019, up from $112 million in April 2018.
On July 23, 2019, after the close of trading, iRobot Corporation cut its full-year earnings forecast. Specifically, fiscal year 2019 revenue guidance was lowered from a range between $1.28 billion and $1.31 billion, to a range between $1.2 billion and $1.25 billion, and earnings per share guidance was lowered from a range between $3.15 and $3.40 to a range between $2.40 and $3.15.
On October 22, 2019, after the close of trading, iRobot Corporation reported its third quarter 2019 financial results. iRobot Corporation cut the high end of its revenue expectations for the year, from $1.25 billion to $1.21 billion, and said it rolled back price increases after a "suboptimal" customer response. iRobot Corporation reported increased inventory levels once again, with third quarter 2019 ending inventory of $248 million or 149 DII compared to the $161 million or 113 DII a year prior.
Shares of iRobot Corporation (NASDAQ: IRBT) declined from $131.35 per share on April 15, 2019 to as low as $44.00 per share on October 23, 2019.
The plaintiff claims that between November 21, 2016 and October 22, 2019, iRobot reported explosive, double-digit revenue growth, which it attributed to increasing demand for its Roomba products, expanded gross margin due to distributor acquisitions, greater brand awareness and technological innovation, while in reality, iRobot was engaging in channel-stuffing in order to inflate its sales and revenues figures, and had acquired two of its largest distributors in order to facilitate and conceal this deceptive practice.
The plaintiff says that as a result of these misrepresentations, iRobot shares traded at artificially inflated prices between November 21, 2016 and October 22, 2019.
Those who purchased shares of iRobot Corporation (NASDAQ: IRBT) have certain options and should contact the Shareholders Foundation.
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