A lawsuit was filed on behalf of investors in Fitbit Inc (NYSE:FIT) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 11/16/2018 -- An investor, who purchased shares of Fitbit Inc (NYSE:FIT), filed a lawsuit over alleged Securities Laws violations by Fitbit Inc in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Fitbit Inc (NYSE:FIT) have certain options and for certain investors are short and strict deadlines running. Deadline: December 31, 2018. NYSE:FIT investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On November 2, 2016, Fitbit Inc announced its Q3 2016 financial results. Fitbit Inc disclosed that it was lowering its full year 2016 revenue guidance to "between $2.320 billion and $2.345 billion," down from the previously-announced "$2.5 to $2.6 billion." On this news, Fitbit's share price fell $4.30 per share, or 33.6%, to close at $8.51 per share on November 3, 2016, on unusually heavy trading volume.
Then, on January 30, 2017, Fitbit announced its preliminary fourth quarter 2016 financial results. Fitbit Inc disclosed that it expected fourth quarter of 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%.
The plaintiff claims that between August 2, 2016 and January 30, 2017, the Defendants failed to disclose that the company was struggling to transition its mission and differentiate itself from Apple Inc. and other competitors, that, as such, Fitbit Inc was experiencing increased competition, that, as a result, demand and sell-through for the Company's existing and new products were being negatively impacted, that, as a result, the Company's sales and financial results were weakening, and growth was slowing, that the Company's financial guidance was overstated, and that, as a result of the foregoing, Defendants' statements between August 2, 2016 and January 30, 2017about Fitbit's business, operations, financial results and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
Those who purchased shares of Fitbit Inc (NYSE:FIT) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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