Glancy Prongay & Murray LLP Files a Securities Class Action on Behalf of Fitbit, Inc. Investors (FIT)

National law firm Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Northern District of California, captioned Lopes v. Fitbit, Inc., et. al., docket number 3:18-cv-06665, on behalf of persons and entities that acquired Fitbit, Inc. (“Fitbit” or the “Company”) (NYSE: FIT) securities between August 2, 2016 and January 30, 2017, inclusive (the “Class Period”). The class action lawsuit alleges securities fraud claims against Fitbit and certain executives of the Company under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Fitbit investors are hereby notified that they have 60 days from the date of this notice to move the Court to serve as lead plaintiff in this action.

A copy of the complaint is available on our website at: glancylaw.com/case/fitbit-inc.

On November 2, 2016, Fitbit issued a press release announcing its Q3 2016 financial results. In the press release, Fitbit 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 unusually heavy trading volume.

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, Fitbit’s share price fell $1.15 per share, or 16%, to close at $6.06 per share on January 30, 2017, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the complaint alleges that the Defendants failed to disclose: (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 Company’s existing and new products were being negatively impacted; (4) that, as a result, the Company’s sales and financial results were weakening, and growth was slowing; (5) that the Company’s financial guidance was overstated; and (6) that, as a result of the foregoing, Defendants’ statements during the Class Period about Fitbit’s business, operations, financial results and prospects, were materially false and/or misleading and/or lacked a reasonable basis.

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If you purchased Fitbit securities during the Class Period, you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20181101006238/en/

Glancy Prongay & Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
[email protected]
www.glancylaw.com