Lawsuit filed for Investors who lost money with shares of iRobot Corporation (NASDAQ: IRBT)

An investor, who purchased shares of iRobot Corporation (NASDAQ: IRBT), filed a lawsuit over alleged violations of Federal Securities Laws by iRobot Corporation in connection with certain allegedly false and misleading statements.

Investors who purchased shares of iRobot Corporation (NASDAQ: IRBT) have certain options and for certain investors are short and strict deadlines running. Deadline: May 7, 2024. NASDAQ: IRBT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Bedford, MA based iRobot Corporation designs, builds, and sells robots for the consumer market worldwide. The Company is primarily known for its robot vacuum cleaner ("RVC") products sold under the "Roomba" brand name.

In August 2022, iRobot and Amazon.com, Inc. ("Amazon"), which sells iRobot's RVCs on its online marketplace, announced their entry into a definitive merger agreement (the "Merger Agreement"), pursuant to which Amazon would "acquire iRobot for $61 per share in an all-cash transaction valued at approximately $1.7 billion, including iRobot's net debt" (the "Merger").
On June 22, 2023, news outlets reported that Europe's antitrust regulator, the European Commission ("EC"), was planning to launch a full-scale investigation into the Merger.

On November 27, 2023, the EC announced that it "has informed Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market for [RVCs]." In particular, the EC advised that, "[a]s a result of [its] in-depth investigation, the [EC] is concerned 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" (emphasis in original).

On January 10, 2024, news outlets reported that Amazon did not offer concessions to the EC to appease the regulator's concerns about the Merger. For example, POLITICOreported that day that "[t]he European Union's webpage on the deal shows that the companies didn't make an offer by the end of the day on Wednesday, its last chance to tackle European Union objections that Amazon could hamper rival vacuum cleaners' sales on Amazon's online marketplace."

On January 18, 2024, the Wall Street Journalreported 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[.]"
On January 19, 2024, Bloombergseparately reported that the U.S. Federal Trade Commission ("FTC") was drafting a lawsuit to block the Merger.

Then, on January 29, 2024, Amazon and iRobot announced their entry "into a mutual agreement" to terminate the previously announced Merger. Concurrently, iRobot announced the resignation of its Chief Executive Officer and Chairman of the Board of Directors, as well as plans to cut approximately 31% of its workforce.
Later the same day, Reutersreported that FTC staff had notified Amazon the week before that it planned to block the Merger.

Shares of iRobot Corporation (NASDAQ: IRBT) declined from $60.25 per share during August 2022 to as low as $10.00 per share on February 27, 2024.

The plaintiff claims that between August 5, 2022 and January 26, 2024, the Defendants made false and/or misleading statements and/or failed to disclose that the Merger would place Amazon in a sufficiently dominant position in the market for RVCs that U.S. and European antitrust regulators were unlikely to approve the Merger, that iRobot had conducted inadequate due diligence into the Merger and/or ignored significant risks weighing against the likelihood of regulatory approval, that as a result of all the foregoing, iRobot overstated the likelihood for successfully completing the Merger, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of iRobot Corporation (NASDAQ: IRBT) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.