PRNewswire 8-Nov-2018 2:29 PM
NEW YORK, Nov. 8, 2018 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Fitbit, Inc. ("Fitbit" or the "Company") (NYSE:FIT) of the December 31, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Fitbit stock or options between August 2, 2016 and January 30, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/FIT. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Fitbit securities between August 2, 2016 and January 30, 2017 (the "Class Period"). The case, Lopes v. Fitbit, Inc. et al, No. 18-cv-06665 was filed on November 1, 2018 and has been assigned to Judge Jon Steven Tigar.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements and/or failing to disclose that: (1) the company was struggling to differentiate itself from Apple Inc. and other competitors; (2) the Company was experiencing increased competition; (3) demand and sell-through for the Company's existing and new products were being negatively impacted; (4) the Company's sales and financial results were weakening, and growth was slowing; and (5) the Company's financial guidance was overstated.
On January 30, 2017, Fitbit issued a press release announcing preliminary Q4 2016 financial results. Therein, Fitbit disclosed that it expected Q4 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%. Fitbit also indicated that it expected its non-GAAP fourth quarter gross margin to be "materially below its previously issued 46% guidance."
On this news, Fitbit's share price fell from $7.21 per share on January 27, 2017 to a closing price of $6.06 on January 30, 2017—a $1.15 or a 15.95% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Fitbit's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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SOURCE Faruqi & Faruqi, LLP
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