Faruqi & Faruqi Alert: GoPro, Inc.
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in GoPro, Inc. (“GoPro” or the “Company”) (NasdaqGS:GPRO) of the March 14, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased GoPro securities between July 21, 2015 and January 13, 2016 (the “Class Period”). The case, Bodri v. GoPro, Inc. et al, No. 3:16-cv-00232 was filed on January 13, 2016, and has been assigned to Judge Jon S. Tigar.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the weak sales of its HERO line of cameras as well as providing misleading and inflated financial expectations for the company's third and fourth quarter 2015.
Specifically, on July 21, 2015, the company announced its guidance for the third quarter 2015, anticipating revenue between $430 million and $435 million. However, on October 28, 2015, the company issued a press release announcing poor third quarter 2015 results, reporting revenue of only $400 million, far below the company's guidance.
Then, after market close on January 13, 2016, GoPro issued a press release, stating that its fourth quarter 2015 revenue of $435 million fell below the company's guidance of $500 million to $550 million. Furthermore, the Company announced a reduction of its workforce by approximately 7%, and that it was incurring approximately $5 million to $10 million in restructuring costs.
After the announcement, Company share price fell $4.08 per share, a 27.9% drop, to $10.52 per share during after-hours trading on January 13, 2016.
If you invested in GoPro securities between July 21, 2015 and January 13, 2016 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding GoPro’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.