Scott+Scott Attorneys at Law LLP (Scott+Scott), a national shareholder and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Fitbit, Inc. (Fitbit or the Company) (NYSE: FIT) and other defendants, related to alleged violations of federal securities laws. If you purchased Fitbit securities between August 2, 2016 and January 30, 2017, you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for more information.
Fitbit claims to be a technology company focused on health-related devices. The Companys products purportedly include wearable deviceshealth and fitness trackers and smartwatchesthat enable users to view data about their daily activity, exercise, and sleep, in real-time.
According to the lawsuit, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects, specifically: (1) that the Company was struggling to transition its mission and differentiate itself from Apple Inc. and other competitors; (2) that, as such, the Company was experiencing increased competition; (3) that, as a result, demand and sell-through for the Companys existing and new products were being negatively impacted; (4) that, as a result, the Companys sales and financial results were weakening, and growth was slowing; (5) that the Companys financial guidance was overstated; and (6) that, as a result of the foregoing, Defendants statements during the Class Period about Fitbits business, operations, financial results and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
On November 2, 2016, Fitbit issued a press release announcing its Q3 2016 financial results. Therein, Fitbit disclosed 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, Fitbits share price fell $4.30 per share33.6%to close at $8.51 per share on November 3, 2016.
Then, on January 30, 2017, Fitbit issued a press release announcing its preliminary fourth quarter 2016 financial results. In the press release, Fitbit 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%. On this news, Fitbits share price fell $1.15 per share16%to close at $6.06 per share on January 30, 2017.
What You Can Do
If you purchased Fitbit securities between August 2, 2016 and January 30, 2017, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at [email protected]. The lead plaintiff deadline is December 31, 2018.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.