RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Fitbit, Inc. (NYSE: FIT) (“Fitbit” or the “Company”) common stock between August 2, 2016 and January 30, 2017, inclusive (the “Class Period”).
Fitbit shareholders may, no later than December 31, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Fitbit and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
Fitbit claims to be a technology company focused on health-related devices. Fitbit’s products purportedly include wearable devices – health and fitness trackers and smartwatches – that enable users to view data about their daily activity, exercise, and sleep, in real-time.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Class Period commences on August 2, 2016, when Fitbit issued a press release entitled “Fitbit Reports $587M Q216 Revenue, $0.03 GAAP EPS/$0.12 Non-GAAP EPS, and Confirms Revenue and Profit Guidance for FY16.”
According to the complaint, on November 2, 2016, Fitbit issued a press release announcing its third quarter 2016 financial results. In the press release, Fitbit disclosed that it was lowering its full year 2016 revenue guidance to “between $2.320 billion and $2.345 billion,” down from the previously announced “$2.5 to $2.6 billion.” Following this news, Fitbit’s share price fell $4.30 per share, or 33.6%, to close at $8.51 per share on November 3, 2016.
Then, on January 30, 2017, Fitbit issued a press release announcing its preliminary fourth quarter 2016 financial results. In the press release, Fitbit disclosed that it expected fourth quarter of 2016 revenue to be in the range of $572 million to $580 million, rather than its previously announced guidance range of $725 million to $750 million. Fitbit also disclosed expected annual revenue growth of approximately 17%, rather than the previously announced forecast of 25% to 26%. Following this news, Fitbit’s share price fell $1.15 per share, or 16%, to close at $6.06 per share on January 30, 2017.
The complaint alleges that throughout the Class Period, the defendants failed to disclose that: (1) Fitbit was struggling to transition its mission and differentiate itself from Apple Inc. and other competitors; (2) as such, Fitbit was experiencing increased competition; (3) as a result, demand and sell-through for Fitbit’s existing and new products were being negatively impacted; (4) as a result, Fitbit’s sales and financial results were weakening, and growth was slowing; (5) Fitbit’s financial guidance was overstated; and (6) as a result of the foregoing, the defendants’ statements during the Class Period about Fitbit’s business, operations, financial results and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
If you are a member of the class, you may, no later than December 31, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.