IROBOT CORPORATION NEW YORK, March 19, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against iRobot Corporation ("iRobot" or the "Company") (NASDAQ: IRBT) and certain officers. The class action, filed in the United States District Court for the District of New Jersey, and docketed under 24-cv-02138, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired iRobot securities between August 5, 2022 and January 26, 2024, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired iRobot securities during the Class Period, you have until May 7, 2024 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
iRobot designs, builds, and sells robots and home innovation products in the U.S., Europe, the Middle East, Africa, Japan, and internationally. The Company is primarily known for its robot vacuum cleaner ("RVC") products sold under the "Roomba" brand name.
In August 2022, iRobot and Amazon.com, Inc. ("Amazon"), which sells iRobot's RVCs on its online marketplace, announced their entry into a definitive merger agreement (the "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" (the "Merger").
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants 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.
On June 22, 2023, news outlets reported that Europe's antitrust regulator, the European Commission ("EC"), was planning to launch a full-scale investigation into the Merger.
On this news, iRobot's stock price fell $4.12 per share, or 8.32%, to close at $45.41 per share on June 22, 2023.
On November 27, 2023, the EC announced that it "has informed Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market for [RVCs]." In particular, the EC advised that, "[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" (emphasis in original).
On this news, iRobot's stock price fell $7.13 per share, or 17.19%, to close at $34.35 per share on November 27, 2023.
On January 10, 2024, news outlets reported that Amazon did not offer concessions to the EC to appease the regulator's concerns about the Merger. For example, POLITICO reported that day that "[t]he European Union's webpage on the deal shows that the companies didn't make an offer by the end of the day on Wednesday, its last chance to tackle European Union objections that Amazon could hamper rival vacuum cleaners' sales on Amazon's online marketplace."
On this news, iRobot's stock price fell $7.33 per share, or 19.77%, to close at $29.75 per share on January 10, 2024.
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[.]"
On January 19, 2024, Bloomberg separately reported that the U.S. Federal Trade Commission ("FTC") was drafting a lawsuit to block the Merger.
Following these reports, iRobot's stock price fell $6.36 per share, or 26.93%, to close at $17.26 per share on January 19, 2024.
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, iRobot's stock price fell $1.49 per share, or 8.77%, to close at $15.50 per share on January 29, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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SOURCE Pomerantz LLP
