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iRobot Corporation Class Action Lawsuit - IRBT

23 days left to seek lead plaintiff status

Case Summary

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The iRobot class action lawsuit seeks to represent purchasers or acquirers of iRobot Corporation (NASDAQ: IRBT) securities between August 5, 2022 and January 26, 2024, inclusive (the “Class Period”).  Captioned Das v. iRobot Corporation, No. 24-cv-02138 (D.N.J.), the iRobot class action lawsuit charges iRobot and certain of iRobot’s top current and former executives with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the iRobot class action lawsuit, please provide your information in the form on this page.  You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com.  Lead plaintiff motions for the iRobot class action lawsuit must be filed with the court no later than May 7, 2024.

CASE ALLEGATIONS: iRobot designs, builds, and sells robots and home innovation products.  The complaint alleges that in August 2022, iRobot and Amazon.com, Inc., which sells iRobot’s robot vacuum cleaners (“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.”

The iRobot class action lawsuit alleges that defendants throughout the Class Period 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; and (iii) as a result of the above, iRobot overstated the likelihood for successfully completing the merger. 

The iRobot class action lawsuit further alleges that 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, the price of iRobot stock fell more than 8%, according to the complaint.

Then, 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],” the complaint further alleges.  On this news, the price of iRobot stock fell, according to the complaint.

Thereafter, the complaint further alleges that 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.  On this news, the price of iRobot stock fell nearly 20%, according to the complaint.

Subsequently, on January 19, 2024, Bloomberg reported that the U.S. Federal Trade Commission was drafting a lawsuit to block the merger, the complaint alleges.  On this news, the price of iRobot stock fell nearly 27%, according to the complaint.

The iRobot class action lawsuit further alleges that on January 29, 2024, Amazon and iRobot announced their entry “into a mutual agreement” to terminate the previously announced merger.  The complaint further alleges that iRobot concurrently announced the resignation of its CEO and Chairman of the Board of Directors, defendant Colin M. Angle, as well as plans to cut approximately 31% of its workforce.  On this news, the price of iRobot stock fell nearly 9%, according to the complaint. 

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired iRobot securities during the Class Period to seek appointment as lead plaintiff in the iRobot class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the iRobot class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the iRobot class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the iRobot class action lawsuit.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list.  And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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