iRobot faces class action lawsuit over alleged securities violations.

A class action lawsuit has been filed against iRobot Corporation and certain officers over alleged violations of federal securities laws. The lawsuit, filed in the Southern District of New York, covers all persons who purchased or acquired iRobot securities between January 29, 2024, and March 11, 2025. Investors who bought iRobot securities during this period have until September 5, 2025, to seek remedies under the Securities Exchange Act of 1934.

A class action lawsuit has been filed against iRobot Corporation and certain of its officers in the Southern District of New York, alleging violations of federal securities laws. The lawsuit, filed by Bronstein, Gewirtz & Grossman, LLC, covers all persons who purchased or acquired iRobot securities between January 29, 2024, and March 11, 2025. Investors who bought iRobot securities during this period have until September 5, 2025, to seek remedies under the Securities Exchange Act of 1934.

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 that Defendants made false and/or misleading statements and/or failed to disclose that:

1. iRobot overstated the extent to which the Restructuring Plan would help the Company maintain stability after the termination of the Amazon Acquisition.
2. As a result, it was unlikely that iRobot would be able to profitably operate as a standalone company.
3. Accordingly, there was substantial doubt about the Company's ability to continue as a going concern.
4. As a result, Defendants' public statements were materially false and misleading at all relevant times.

The lawsuit seeks to recover damages on behalf of all investors who suffered losses due to these alleged violations. Investors are encouraged to join this case by visiting the firm’s site: bgandg.com/IRBT [1].

On March 12, 2025, iRobot issued a press release reporting its fourth quarter and full-year 2024 financial results. For the quarter, iRobot reported a loss of $2.06 per share on revenue of $172 million, representing a 44% year-over-year decline. iRobot also cautioned investors that "there can be no assurance that [iRobot's] new product launches will be successful due to potential factors, including, but not limited to consumer demand, competition, macroeconomic conditions, and tariff policies." Accordingly, "given these uncertainties and the implication they may have on the Company's financials, there is substantial doubt about the Company's ability to continue as a going concern for a period of at least 12 months from the date of the issuance of its consolidated 2024 financial statements" [3].

Market analysts were quick to comment on iRobot's announcement. For example, an analyst from Seeking Alpha downgraded iRobot to a sell rating from a hold rating, stating that "iRobot's business prospects have deteriorated significantly since the Amazon acquisition fell through, leading to massive layoffs and growing losses," and that "iRobot's future is uncertain, with substantial doubts about its viability within the next 12 months, despite ongoing discussions with its primary lender" [3].

On this news, iRobot's stock price fell $3.255 per share, or 51.58%, over the following two trading sessions, to close at $3.055 per share on March 13, 2025 [3].

If you purchased or otherwise acquired iRobot shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests, you are encouraged to contact the law firm representing investors in this case [1, 2, 3].

References:
[1] https://www.morningstar.com/news/globe-newswire/9511000/irbt-investor-alert-bronstein-gewirtz-grossman-llc-announces-that-irobot-corporation-investors-with-substantial-losses-have-opportunity-to-lead-class-action-lawsuit
[2] https://www.globenewswire.com/news-release/2025/08/12/3132081/9788/en/IRBT-INVESTOR-ALERT-Bronstein-Gewirtz-Grossman-LLC-Announces-that-iRobot-Corporation-Investors-with-Substantial-Losses-Have-Opportunity-to-Lead-Class-Action-Lawsuit.html
[3] https://www.globenewswire.com/news-release/2025/08/11/3131374/0/en/Bragar-Eagel-Squire-P-C-Reminds-Investors-in-IRobot-IRBT-of-the-Class-Action-Lawsuit-and-Encourages-Investors-to-Inquire-About-Their-Rights.html