NEW YORK, Dec. 24, 2018 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Fitbit, Inc. (“Fitbit” or the “Company”) (NYSE: FIT) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Fitbit securities between August 2, 2016 and January 30, 2017, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/fit.
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 Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) the company was struggling to transition its mission and differentiate itself from Apple Inc. and other competitors; (2) as such, the Company was experiencing increased competition; (3) as a result, demand and sell-through for the Company’s existing and new products were being negatively impacted; (4) as a result, the Company’s sales and financial results were weakening, and growth was slowing; (5) the Company’s financial guidance was overstated; and (6) as a result of the foregoing, 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.
On November 2, 2016, Fitbit announced its financial Q3 2016 results and revealed that it was lowering its 2016 full year revenue guidance to “between $2.320 billion and $2.345 billion,” from the previously-announced “$2.5 to $2.6 billion.” Following this news, Fitbit stock dropped $4.30 per share, or 33.6%, to close at $8.51 per share on November 3, 2016.
Then, on January 30, 2017, Fitbit announced its preliminary 2016 fourth quarter financial results and said that it expected the 2016 fourth quarter revenue to be in the range of $572 million to $580 million, and not its previously announced guidance range of $725 million to $750 million. The company also said it expected annual revenue growth of approximately 17%, rather than the previously-announced forecast of 25% to 26%. Following this news, Fitbit stock again dropped $1.15 per share, or 16%, to close at $6.06 per share on January 30, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: bgandg.com/fit or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Fitbit you have until January 2, 2019 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | firstname.lastname@example.org
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