Business Wire 8-Nov-2018 7:00 PM
Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Fitbit, Inc. (NYSE:FIT) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between August 2, 2016 and January 30, 2017. Fitbit, a technology company, provides health solutions in the United States and internationally.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/fitbit-inc-nov-2018/.
Fitbit Accused of Failing to Disclose Impact of Competitive Pressures
According to the complaint, Fitbit touted that the company was on the cusp of transitioning its mission from a consumer electronics company to a digital healthcare company and that it sold the number one best-selling fitness tracker on Amazon. However, Fitbit was struggling to differentiate itself from Apple Inc., leading to slowing demand for Fitbit's products. On November 2, 2016, Fitbit released disappointing financial results and lowered its full year 2016 revenue guidance. The company again lowered its guidance in January 2017. Since Fitbit's financial outlook started declining, the company's stock price lost over half of its value, closing at $6.06 per share on January 30, 2017. Nearly two years later, Fitbit trades at approximately the same price.
Fitbit Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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