SAN DIEGO, March 18, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder filed a class action on behalf of all those who purchased or otherwise acquired iRobot Corporation (NASDAQ: IRBT) common stock between August 5, 2022 and January 26, 2024. iRobot designs, builds, and sells robots and home innovation products in the U.S., Europe, the Middle East, Africa, Japan, and internationally. The Company is primarily known for its robot vacuum cleaner (“RVC”) products sold under the “Roomba” brand name.
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The Allegations: Robbins LLP is Investigating the Allegations Surrounding the Dissolved Merger Between Amazon.com, Inc. and iRobot Corporation (IRBT)
According to the complaint, in August 2022, iRobot and Amazon.com, Inc. entered into a merger agreement to sell iRobot’s RVCs on its online marketplace, 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.”
Plaintiff contends that during the class period, defendants failed to disclose that: (i) the merger between itself and Amazon would place Amazon in a sufficiently dominant position in the market for RVCs that U.S. and European antitrust regulators were unlikely to approve the merger; (ii) iRobot had conducted inadequate due diligence into the merger and/or ignored significant risks weighing against the likelihood of regulatory approval; and therefore, (iii) iRobot overstated the likelihood for successfully completing the Merger.
As negative reports relating to the merger were disclosed, i.e.,the European Union’s investigation and its concern that Amazon may restrict competition, the price of iRobot’s stock declined. Between June 22, 2023 and January 19, 2024, the stock declined from $45.41 per share to $17.26 per share. Finally, on January 29, 2024, Amazon and iRobot announced they had terminated the merger agreement. In addition, iRobot’s CEO and Chairman of the Board resigned and the Company revealed its plan to cut approximately 31% of its workforce. On this news, the stock fell further, to close at $15.50 on January 29, 2024.
What Now: You may be eligible to participate in the class action against iRobot Corporation. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by May 7, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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