GoPro, Inc. (NASDAQ: GPRO)
A class action has been commenced in the United States District Court for the Northern District of California on behalf of shareholders who purchased securities of GoPro, Inc. (GPRO) within the class period of August 4, 2017 to January 5, 2018, inclusive.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or omitted material adverse information regarding GoPro’s business and prospects. Specifically, the complaint alleges defendants failed disclose that demand for the GoPro brand had dramatically declined and retailers were not stocking up for the 2017 holiday sales season to the extent GoPro had budgeted for, that demand for GoPro’s Karma drones was so weak the Company could no longer afford to manufacture the drones profitably, that GoPro would be forced to slash the prices on some of its best-selling products, and that, as a consequence, GoPro was not on track to achieve the financial results it had led the market to expect during the Class Period. As a result of defendants’ false and misleading statements and/or omissions, the price of GoPro stock was artificially inflated during the Class Period, reaching a high of more than $11.80 per share, and allowing certain of the Company’s senior executives to sell their personally owned GoPro shares at artificially inflated prices, including GoPro’s CEO and CFO, who collectively sold more than $6.5 million worth of GoPro stock in November 2017.
Then, on January 8, 2018, before the market opened, GoPro announced its fourth quarter 2017 financial results, disclosing that GoPro had achieved sales of just $340 million instead of the $470 million in sales defendants had led analysts and the market to expect. GoPro blamed the results on the slashing of prices for its HERO6 Black, HERO5 Black and HERO5 Session cameras, as well as its Karma drone, which the Company had been forced to engage in to move inventory and which had a negative $80 million impact on revenues. GoPro also disclosed it was cutting more than one-fifth of its workforce and exiting the drone market altogether, requiring it to dump the rest of its Karma drone inventory. On this news, the price of GoPro stock declined as much as 32% in intraday trading before closing at $6.56 per share on unusually high trading volume.
If you are a current shareholder and/or purchased stock between August 4, 2017 to January 5, 2018 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
Please Note: Neither the submission to nor the receipt of information by The Law Offices of Marc S. Henzel or one of its attorneys through this website constitutes an agreement by the firm to represent the individual and does not create an attorney-client relationship.