Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, announces that a federal class action lawsuit has been filed against GoPro, Inc. (“GoPro” or “Company”) (NasdaqGS: GPRO) and several officers and directors for acts taken during the period of November 2, 2017 and January 5, 2018 (the “Class Period”).
Based upon the allegations in the class action, the firm is investigating additional legal claims against the officers and Board of Directors of GoPro. If you are an affected GoPro shareholder and want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC via email at firstname.lastname@example.org or call toll free at (888) 809-2750. There is no cost or fee to you.
In the complaint, the defendants are alleged to have violated certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges, among other things, that defendants misrepresented and/or failed to disclose during the Class Period that: (i) the demand for the GoPro brand had dramatically declined and retailers were not stocking up for 2017 holiday sales to the extent GoPro had budgeted for; (ii) the demand for GoPro’s Karma drones was sufficiently weak that the Company could no longer afford to manufacture and sell them profitably; (iii) GoPro would be forced to dramatically slash prices on its newly launched HERO6 Black and its dated HERO5 Black and HERO5 Session cameras, as well as its Karma drone, during the quarter and would need to further slash HERO6 prices in January 2018; and (iv) as a result of the foregoing, GoPro was not on track to achieve the financial results it had led the market to believe it was on track to achieve during the Class Period.
Before the market opened on Monday, January 8, 2018, GoPro issued a press release filed on Form 8-K with the SEC entitled “GoPro Announces Preliminary Fourth Quarter 2017 Results.” In that press release, GoPro revealed that its fourth quarter 2017 sales were $340 million, significantly below analysts’ projections of over $470 million. The Company blamed the results on the slashing of prices for its HERO6 Black, HERO5 Black, and HERO5 Session cameras, as well as its Karma drone, during the quarter, which GoPro had been forced to engage in to move inventory and which had a negative $80 million impact on revenues. GoPro also disclosed it was cutting more than one-fifth of its workforce and exiting the drone market altogether, requiring it to dump the rest of its Karma drone inventory. GoPro had cut the price for its HERO5 Black camera in December 2017 and announced it was now reducing the price of its newly launched HERO6 model to $399 from $499. The workforce reduction would cost GoPro $33 million, mainly in severance costs. When this news was revealed to the market, the Company’s stock dropped significantly.
The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.