RADNOR, Pa. -- (Business Wire)
The law firm of Kessler Topaz Meltzer & Check, LLP reminds investors
that a securities fraud class action lawsuit has been filed against
Fitbit, Inc. (NYSE: FIT) (“Fitbit”) on behalf of purchasers of Fitbit
securities between August 2, 2016 and January 30, 2017,
inclusive (the “Class Period”).
Important Deadline:Investors who purchased Fitbit
securities during the Class Period may, no later
than December 31, 2018, seek to be appointed as a lead plaintiff
representative of the class. For additional information or to learn how
to participate in this action please visit www.ktmc.com/fitbit-2018-securities-class-action
According to the complaint, 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.
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
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 wish to discuss this securities fraud class action or have any
questions concerning this notice or your rights or interests with
respect to these matters, please contact Kessler Topaz Meltzer & Check
(James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299–7706 or
(610) 667–7706, or via e-mail at firstname.lastname@example.org.
Fitbit investors may, no later than December
31, 2018, seek to be appointed as a lead plaintiff
representative of the class through Kessler Topaz Meltzer & Check, or
other counsel, or may choose to do nothing and remain an absent class
member. A lead plaintiff is a representative party who acts on behalf of
all class members in directing the litigation. In order to be appointed
as a 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. Your ability to share
in any recovery is not affected by the decision of whether or not to
serve as a lead plaintiff. Returning any form or communicating with any
counsel is not necessary to participate or share in any recovery
achieved in this case.
Kessler Topaz Meltzer & Check prosecutes class actions in state and
federal courts throughout the country involving securities fraud,
breaches of fiduciary duties and other violations of state and federal
law. Kessler Topaz Meltzer & Check is a driving force behind corporate
governance reform, and has recovered billions of dollars on behalf of
institutional and individual investors from the United States and around
the world. The firm represents investors, consumers and whistleblowers
(private citizens who report fraudulent practices against the government
and share in the recovery of government dollars). The complaint in this
action was not filed by Kessler Topaz Meltzer & Check. For more
information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181108005588/en/
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
Source: Kessler Topaz Meltzer & Check, LLP
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