Faruqi & Faruqi, LLP’s national practice focuses on complex civil litigation. The firm practices in the areas of Securities, Merger & Transactional, Shareholder Derivative, Antitrust, Consumer Class Action, and Wage & Hour litigation.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the weak sales of its HERO line of cameras as well as providing misleading and inflated financial expectations for the company's third and fourth quarter 2015.
Specifically, on July 21, 2015, the company announced its guidance for the third quarter 2015, anticipating revenue between $430 million and $435 million. However, on October 28, 2015, the company issued a press release announcing poor third quarter 2015 results, reporting revenue of only $400 million, far below the company's guidance.
Then, after market close on January 13, 2016, GoPro issued a press release, stating that its fourth quarter 2015 revenue of $435 million fell below the company's guidance of $500 million to $550 million. Furthermore, the Company announced a reduction of its workforce by approximately 7%, and that it was incurring approximately $5 million to $10 million in restructuring costs.
After the announcement, Company share price fell $4.08 per share, a 27.9% drop, to $10.52 per share during after-hours trading on January 13, 2016.