iRobot Faces Class Action Lawsuit Following Amazon Deal Collapse

iRobot Corporation is facing a class action lawsuit after the collapse of its acquisition by Amazon. The lawsuit alleges that the company misled investors about its financial health and future prospects between January 2024 and March 2025. Shareholders who suffered financial losses can visit a provided link to understand their rights and take action with no cost or obligation. The lawsuit is led by Levi & Korsinsky LLP, a firm with over two decades of experience in securities litigation.

iRobot Corporation (NASDAQ: IRBT) is embroiled in a class action lawsuit following the collapse of its planned acquisition by Amazon. The lawsuit, filed on July 9, 2025, alleges that the company misled investors about its financial health and future prospects between January 29, 2024, and March 11, 2025. Investors who purchased shares during this period may be eligible for compensation if the case succeeds.

The lawsuit, led by Rosen Law Firm, claims that iRobot overstated the benefits of its restructuring plan, creating a false sense of security about its ability to function as a standalone business. The company's leadership failed to disclose serious doubts about iRobot's long-term financial health, leading to significant losses when the truth emerged [1].

On March 12, 2025, iRobot released its fourth quarter and full year 2024 financial results, reporting a loss of $2.06 per share on revenue of $172 million. The company also admitted that there was "substantial doubt" about its ability to continue as a going concern for at least 12 months from the date of the issuance of its consolidated 2024 financial statements [2]. This revelation triggered a 51.6% stock price plunge, injuring investors.

The lawsuit argues that iRobot's "Restructuring Plan" (iRobot Elevate) was built on false premises. Executives allegedly downplayed reliance on Amazon's infrastructure and omitted critical risks, such as supply chain fragility and declining consumer demand. These omissions have left investors questioning whether the company can survive without external support [3].

The Rosen Law Firm encourages investors to carefully choose experienced counsel. The firm has secured hundreds of millions of dollars for investors worldwide and is known for its successful track record in securities fraud cases [1].

Investors who purchased iRobot shares during the specified period have until September 5, 2025, to file a lead plaintiff motion. Even those not seeking lead status should consult legal counsel to assess eligibility. The lawsuit is a significant development for iRobot, which faces mounting risks and financial strain.

References:
[1] https://www.lawyer-monthly.com/2025/07/rosen-law-firm-irobot-class-action/
[2] https://www.morningstar.com/news/business-wire/20250714398911/glancy-prongay-murray-llp-a-leading-securities-fraud-law-firm-encourages-irobot-corporation-irbt-investors-to-inquire-about-securities-fraud-class-action
[3] https://www.ainvest.com/news/irobot-legal-financial-crossroads-caution-advised-september-5-2507/