Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against iRobot Corporation (IRBT)

LOS ANGELES, April 04, 2024 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming May 7, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired iRobot Corporation (“iRobot” or the “Company”) (NASDAQ: IRBT) securities between August 5, 2022 and January 26, 2024, inclusive (the “Class Period”).

If you suffered a loss on your iRobot investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/iRobot-Corporation-1/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.

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. On this news, iRobot’s stock price fell $4.12, or 8.3%, to close at $45.41 per share on June 22, 2023, thereby injuring investors.

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.

Then, on January 10, 2024, it was reported that Amazon did not offer concessions to the EC regarding concerns about the Merger. On this news, iRobot’s stock price fell $7.33, or 19.8%, to close at $29.75 per share on January 10, 2024.

Then, 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.

Then, 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, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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.

Follow us for updates on LinkedIn, Twitter, or Facebook.

If you purchased or otherwise acquired iRobot securities during the Class Period, you may move the Court no later than May 7, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
[email protected]
www.glancylaw.com