iRobot Corporation
Case Overview
9 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 05/07/2024 |
Status: | Status: Investigating |
Company Name: | Company Name: iRobot Corporation |
Court: | Court: District of New Jersey |
Case Number: | Case Number: 2:24cv02138 |
Class Period: | Class Period: 08/05/2022 - 01/26/2024 |
Ticker: | Ticker: IRBT |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired iRobot Corporation (“iRobot” or the “Company”) (NASDAQ:IRBT) securities during the period of August 5, 2022 through January 26, 2024, inclusive (“the Class Period”). Investors have until May 79, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
In August 2022, iRobot and Amazon, which sells iRobot's RVCs on its online marketplace, announced their entry into a definitive merger agreement, pursuant to which Amazon would "acquire iRobot for $61 per share in an all-cash transaction valued at approximately $1.7 billion, including iRobot's net debt". ?On June 22, 2023, news outlets reported that the European Commission was planning to launch a full-scale investigation into the merger. On this news, the price of iRobot shares declined by $4.12 per share, or approximately 8.32%, to close at $45.41 per share on June 22, 2023.
On November 27, 2023, the EC announced that it "[a]s a result of [its] in-depth investigation, the [EC] is concerned 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, the price of iRobot shares declined by $7.13 per share, or approximately 17.19%, to close at $34.35 per share on November 27, 2023.
Then, on January 29, 2024, Amazon and iRobot announced their entry "into a mutual agreement" to terminate the previously announced Merger. Concurrently, iRobot announced the resignation of its Chief Executive Officer and Chairman of the Board of Directors, as well as plans to cut approximately 31% of its workforce. Later the same day, Reuters reported that FTC staff had notified Amazon the week before that it planned to block the Merger. Following these disclosures, the price of iRobot shares declined by $1.49 per share, or approximately 8.77%, to close at $15.50 per share on January 29, 2024.
The lawsuit alleges that, throughout the Class Period, iRobot made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, iRobot made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) iRobot had conducted inadequate due diligence into the Merger and/or ignored significant risks weighing against the likelihood of regulatory approval; (iii) as a result of all the foregoing, iRobot overstated the likelihood for successfully completing the Merger; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
In August 2022, iRobot and Amazon, which sells iRobot's RVCs on its online marketplace, announced their entry into a definitive merger agreement, pursuant to which Amazon would "acquire iRobot for $61 per share in an all-cash transaction valued at approximately $1.7 billion, including iRobot's net debt". ?On June 22, 2023, news outlets reported that the European Commission was planning to launch a full-scale investigation into the merger. On this news, the price of iRobot shares declined by $4.12 per share, or approximately 8.32%, to close at $45.41 per share on June 22, 2023.
On November 27, 2023, the EC announced that it "[a]s a result of [its] in-depth investigation, the [EC] is concerned 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, the price of iRobot shares declined by $7.13 per share, or approximately 17.19%, to close at $34.35 per share on November 27, 2023.
Then, on January 29, 2024, Amazon and iRobot announced their entry "into a mutual agreement" to terminate the previously announced Merger. Concurrently, iRobot announced the resignation of its Chief Executive Officer and Chairman of the Board of Directors, as well as plans to cut approximately 31% of its workforce. Later the same day, Reuters reported that FTC staff had notified Amazon the week before that it planned to block the Merger. Following these disclosures, the price of iRobot shares declined by $1.49 per share, or approximately 8.77%, to close at $15.50 per share on January 29, 2024.
The lawsuit alleges that, throughout the Class Period, iRobot made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, iRobot made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) iRobot had conducted inadequate due diligence into the Merger and/or ignored significant risks weighing against the likelihood of regulatory approval; (iii) as a result of all the foregoing, iRobot overstated the likelihood for successfully completing the Merger; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.