iRobot Corporation (NASDAQ: IRBT)

This lawsuit is for anyone who acquired securities in iRobot Corporation (NASDAQ: IRBT) from August 5, 2022 through January 26, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by touting a proposed merger with Amazon while failing to inform investors that the proposed merger with Amazon would give Amazon a monopoly on the robotic vacuum cleaner business such that European regulators would likely not approve the merger.

On June 22, 2023, news outlets reported that the European Commission (“EC”) was planning a full-scale investigation into iRobot’s August 2022 merger with Amazon.com, Inc. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on November 27, 2023, the EC announced that it had “informed Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market” for robot vacuum cleaner (“RVC”) products. Specifically, the EC stated its concern “that Amazon may restrict competition in the European Economic Area (‘EEA’)-wide and/or national markets for RVCs, by hampering rival RVC suppliers’ ability to effectively compete.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on January 10, 2024, it was reported that Amazon did not offer concessions to the EC regarding concerns about the Merger. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on January 18, 2024, the Wall Street Journal reported that “[t]he European Union’s competition watchdog intends to block Amazon’s $1.7 billion bid to purchase Roomba maker iRobot,” citing “people familiar with the matter.” Additionally, on January 19, 2024, Bloomberg reported that the US Federal Trade Commission was also planning to block the Merger. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on January 29, 2024, Amazon and iRobot announced that they would be terminating the Merger. iRobot also disclosed that its Chief Executive Officer and Chairman of the Board of Directors would be resigning, and that it planning to cut approximately 31% of its workforce. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in iRobot Corporation (NASDAQ: IRBT) from August 5, 2022 through January 26, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.