According to the Complaint, iRobot Corporation designs, builds, and sells robots and home innovation products in the U.S., Europe, the Middle East, Africa, Japan, and internationally. This class action was filed against iRobot and four of its Officers.

In August 2022, iRobot entered into a merger agreement with Amazon.com, Inc. (“Amazon”) pursuant to which Amazon would acquire iRobot for $61 per share in an all-cash transaction. However, in January 2024, Amazon and iRobot announced that they had mutually agreed to terminate the Amazon Acquisition, citing regulatory concerns. In the wake of the Amazon Acquisition’s termination, iRobot touted that it would be implementing an operational restructuring plan (the “Restructuring Plan”). The Restructuring Plan, according to the Company, would “enable [it] to chart a new strategic path for sustainable value creation.”

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) iRobot overstated the extent to which the Restructuring Plan would help the Company maintain stability after the termination of the Amazon Acquisition; (ii) as a result, it was unlikely that iRobot would be able to profitably operate as a standalone company; (iii) accordingly, there was substantial doubt about the Company’s ability to continue as a going concern; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times.