NEW YORK, Dec. 30, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Fitbit, Inc. (“Fitbit” or the “Company”) (NYSE: FIT) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and indexed under 18-cv-06922, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise acquired Fitbit securities between August 2, 2016 through January 30, 2017, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Fitbit securities between August 2, 2016 and January 30, 2017, both dates inclusive, you have until December 31, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here to join this class action]
Fitbit is a technology company focused on delivering health solutions that impact health outcomes. The Fitbit platform combines wearable devices with software and services to give their users tools to help them reach their health and fitness goals, augmented by general-purpose features that add further utility and drive user engagement. Its wearable devices, which include health and fitness trackers and smartwatches, enable their users to view data about their daily activity, exercise and sleep in real-time.
The core of the Company’s platform is its family of wearable devices. These devices automatically track users’ daily steps, calories burned, distance traveled, and active minutes, and display real-time feedback to encourage users to become more active in their daily lives. Most of its wearable devices also measure floors climbed, and sleep duration and quality, and its more advanced products track heart rate and GPS-based information such as speed, distance, and exercise routes. Several of its devices also have more advanced features such as the ability to receive call and text notifications, and their first smartwatch, Fitbit Ionic, offers contactless payments, on-board music, notifications, and several apps.
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was facing headwinds, caused by greater competition in the marketplace; (ii) the Company was failing to differentiate its products from its competitors, including Apple Inc.’s Watch; (iii) consequently, demand for Fitbit’s products was faltering; (iv) the Company overstated its financial guidance; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On November 2, 2016, Fitbit issued a press release announcing its financial results for the third fiscal quarter of 2016, which 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 January 30, 2017, Fitbit issued a press release announcing its preliminary fourth fiscal quarter 2016 financial results, which disclosed that the Company 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 further announced that it forecasted its annual revenue growth to be approximately 17%, rather than the previously-announced forecast of 25% to 26%.
On this news, Fitbit’s share price fell $1.15 per share, or 16%, to close at $6.06 per share on January 30, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com 888-476-6529 ext. 9980
