Investors of the popular fitness tracker Fitbit were in court arguing that Fitbit covered up problems with its technology, which led to an inflated stock price. Once the truth about technology problems was revealed, it adversely affected investors.
A group of investors who purchased shares of Fitbit in the company’s June 2015 initial public offering (IPO) are seeking to66 represent a larger “class” – anyone who bought shares in the IPO and have lost money as a result of statements relied upon by the company in advance of their purchase, and those who bought shares in the IPO through May 2016, when relevant information about the company’s technology came to light.
According to the plaintiffs, Fitbit misled investors both before and after its 2015 IPO by telling the public their proprietary algorithms “accurately measure and analyze user health and fitness metrics” despite knowing that issues existed.
The shareholder suit arose after users started complaining that Fitbit devices provided “wildly inaccurate” results, especially during periods of intense exercise. News of the issues caused the stock to drop from nearly $31 to just under $14 from January through May of 2016.
Board Members Named in Lawsuit
The lawsuits also name the company CEO and Chairman James Park, CFO William Zerella and CTO Eric Friedman. A motion to dismiss was denied last October and again in part in January, with the judge ruling the shareholders’ claims were strong enough to survive and proceed.
Are you involved in the Class Certification Against Fitbit?
If you invested in Fitbit, you may have certain legal rights that require your immediate attention.
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