SAN DIEGO, May 02, 2016 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed in for certain investors in Fitbit Inc (NYSE:FIT) over alleged Securities Laws violations by Fitbit Inc in connection the company’s June 22, 2015 initial public offering.
Investors who purchased shares of Fitbit Inc (NYSE:FIT) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Fitbit manufactures wearable activity-tracking devices that are wireless and measure data related to a person’s fitness, such as steps walked, hours slept, and stairs climbed. In late 2014, Fitbit introduced a device that included a heart-rate monitor, which was a major selling point for its devices.
The plaintiff says that in fact, Fitbit’s registration statement for the June 22, 2015 initial public offering (“IPO”) touted Fitbit’s “PurePulse continuous heart rate tracking…” as one of its “Competitive Strengths – What Sets [Fitbit] Apart.”
However, the plaintiff alleges that the truth was that Fitbit’s heart rate monitoring on two of its most popular devices, the Fitbit Charge HR and Fitbit Surge, were inaccurate and posed serious health risks to users that attempted to rely on Fitbit’s heart rate monitoring and that the defendants were negligent in not knowing that this "competitive strength" did not work and was actually dangerous.
The plaintiff says that the inclusion of Fitbit's heart rate monitoring as one of its competitive strengths and detailed description of the technology that did not work properly rendered the Registration Statement for IPO materially misleading and that pursuant to this allegedly misleading Registration Statement, Fitbit, certain of its stockholders, and the Underwriters sold over 36.5 million shares of Fitbit’s common stock to the public at $ 20 per share, raising more than $732 million.
On January 5, 2016, a consumer class action lawsuit was filed against Fitbit alleging problems in the heart rate monitoring systems on the Company's Fitbit Charge HR and Fitbit Surge devices. The claims against Fitbit include violations of California's Unfair Competition Law and Consumers Legal Remedies Act, common law fraud, and unjust enrichment.
Fitbit's stock price has dropped dramatically, failing below $ 12 per share or 40% below the IPO price.
Those who purchased Fitbit Inc (NYSE:FIT) shares have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a 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. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.