NEW YORK and SAN DIEGO, Feb. 07, 2018 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP reminds all investors that a class action has been has been filed against GoPro, Inc. (“GoPro” or the “Company”) (NASDAQ:GPRO) in the United States District Court for the Northern District of California on behalf of a class consisting of investors who purchased or otherwise acquired the securities of GoPro between August 4, 2017 and January 5, 2018, both dates inclusive (the “Class Period”).

Investors who have incurred losses in GoPro, Inc. are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.

If you have incurred losses in the shares of GoPro, Inc. and would like to assist with the litigation process as a lead plaintiff, you may, no later than March 12, 2018, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in GoPro, Inc.   

The filed Complaint alleges that 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:

  • demand for the GoPro brand had dramatically declined and retailers were not stocking up for 2017 holiday sales to the extent GoPro had budgeted for;
     
  • demand for GoPro’s Karma drones was sufficiently weak that the Company could no longer afford to manufacture and sell them profitably;
     
  • the Company would be forced to dramatically slash prices on its newly launched HERO6 Black and its dated HERO5 Black and HERO5 Session cameras, as well as its Karma drone, during the quarter and would need to further slash HERO6 prices in January 2018; and
     
  • as a result of the foregoing, GoPro was not on track to achieve the financial results it had led the market to believe it was on track to achieve during the Class Period.

On Monday, January 8, 2018, prior to the commencement of trading, GoPro issued a press release filed on Form 8-K with the Securities and Exchange Commission (SEC) entitled “GoPro Announces Preliminary Fourth Quarter 2017 Results,” revealing that its fourth quarter 2017 sales were $340 million, significantly below analysts’ projections of over $470 million.  GoPro blamed the results on the slashing of prices for its HERO6 Black, HERO5 Black, and HERO5 Session cameras, as well as its Karma drone, during the quarter, which the Company had been forced to engage in to move inventory and which had a negative $80 million impact on revenues.

GoPro also disclosed it was cutting more than one-fifth of its workforce and exiting the drone market altogether, requiring it to liquidate the rest of its Karma drone inventory. GoPro had cut the price for its HERO5 Black camera in December 2017 and announced it was now reducing the price of its newly launched HERO6 model to $399 from $499. The workforce reduction would cost GoPro $33 million, mainly in severance costs.

Following this news, GoPro’s stock price declined, falling over 12%, to close at $6.56 per share, a market capitalization loss of over $100 million.

Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country.  The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego.  The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.

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Contact:

Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774

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