Case Summary

iRobot

NASDAQ: IRBT

Case Details

  • Das v. iRobot Corporation et al.
  • Class Period:August 05, 2022 - January 26, 2024
  • Date Filed:March 08, 2024
  • Jurisdiction:U.S. District Court, District of New Jersey
  • Docket Number: 2:24-cv-02138
  • Lead Plaintiff Deadline: May 7, 2024
Days Left to
Seek Plaintiff
14

Overview

A class action lawsuit has been filed against iRobot Corporation (“iRobot” or the “Company”) (NASDAQ: IRBT) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The iRobot lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired iRobot securities between August 5, 2022 and January 26, 2024, both dates inclusive (the “Class Period”), and investors have until May 7, 2024 to seek appointment as lead plaintiff of the iRobot class action lawsuit.

iRobot designs, builds, and sells robots and home innovation products in the United States, Europe, the Middle East, Africa, Japan, and other places internationally.  The Company is primarily known for its robot vacuum cleaner (“RVC”) products sold under the “Roomba” brand name.  In August 2022, iRobot and Amazon.com, Inc. (“Amazon”), which sells iRobot’s RVCs on its online marketplace, announced their entry into a definitive merger agreement (the “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 “Merger”).

The lawsuit alleges that Defendants, throughout the Class Period, made materially false and misleading statements regarding the Company’s business, operations, and prospects.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Merger would place Amazon in a sufficiently dominant position in the market for RVCs such that U.S. and European antitrust regulators were unlikely to approve the Merger; (2) iRobot had conducted inadequate due diligence into the Merger and/or ignored significant risks weighing against the likelihood of regulatory approval; (3) as a result of all the foregoing, iRobot overstated the likelihood for successfully completing the Merger; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.

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, iRobot’s stock price fell $4.12 per share, or 8.32%, to close at $45.41 per share on June 22, 2023.  On November 27, 2023, the EC announced that it informed Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market for RVCs.  In particular, the EC advised that, “as a result of its in-depth investigation, the EC is concerned that Amazon may restrict competition in the European Economic Area (‘EEA’)-wide and/or national markets for RVCs, by hampering rival RVC suppliers’ ability to effectively compete”.  On this news, iRobot’s stock price fell $7.13 per share, or 17.19%, to close at $34.35 per share on November 27, 2023.

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.  For example, Politico reported that day that the European Union’s webpage on the deal showed that the companies did not make an offer by the end of the day on Wednesday, their last chance to tackle European Union objections that Amazon could hamper rival vacuum cleaners’ sales on Amazon’s online marketplace.  On this news, iRobot’s stock price fell $7.33 per share, or 19.77%, to close at $29.75 per share on January 10, 2024.  On January 18, 2024, the Wall Street Journal reported that the European Union’s competition watchdog intends to block Amazon’s $1.7 billion bid to purchase Roomba maker iRobot, citing people familiar with the matter.  On January 19, 2024, Bloomberg separately reported that the U.S. Federal Trade Commission (“FTC”) was drafting a lawsuit to block the Merger.  Following these reports, iRobot’s stock price fell $6.36 per share, or 26.93%, to close at $17.26 per share on January 19, 2024.  Then, on January 29, 2024, Amazon and iRobot announced their entry into a mutual agreement to terminate the previously announced Merger.  Concurrently, iRobot announced the resignation of its Chief Executive Officer and Chairman of the Board of Directors, as well as plans to cut approximately 31% of its workforce.  Later the same day, Reuters reported that FTC staff had notified Amazon the week before that it planned to block the Merger.  Following these disclosures, iRobot’s stock price fell $1.49 per share, or 8.77%, to close at $15.50 per share on January 29, 2024.

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If you purchased or otherwise acquired iRobot (NASDAQ: IRBT) securities between August 5, 2022 and January 26, 2024, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the iRobot lawsuit is May 7, 2024.

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