Our law firm is filing potential claims on behalf of shareholders of Fitbit Inc (NYSE: FIT) over possible violations of US securities laws.
Did you purchase Fitbit Inc (NYSE: FIT) stock between June 18, 2015 and May 19, 2016? If so, you may be entitled to compensation,
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A $33 million settlement between Fitbit and aggrieved shareholders has come closer to reality as attorneys for both parties asked a California federal judge for preliminary approval of the agreement.The securities litigation stems from a much-publicized consumer lawsuit alleging that Fitbit’s signature product, a fitness-tracking device, did not live up to its billing.
Claims in the consumer lawsuit included information demonstrating that heart-rate tracking technology in Fitbit’s fitness watches was “wildly inaccurate” and that the watches didn’t function as intended during strenuous activity.
In response, Fitbit was forced to admit that the company had made several false statements about its technology.
As a result of the consumer lawsuit and follow-up disclosures, Fitbit’s stock price swooned dramatically, falling from a high of $30.96 in January 2016 to $13.99 by May of that year.
Faced with major losses on Fitbit stock, investor Brian Robb sued the company in January 2016, claiming Fitbit misled investors by claiming that technology in its devices was able to “accurately measure and analyze user health and fitness metrics,” despite knowing those statements were not correct.
In addition to Fitbit and several of its corporate executives, the lawsuit also names Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc., financial firms who served as underwriters of the company’s initial public offering.
The $33 million settlement reached between the parties provides nearly 20 percent of recoverable damages to the shareholders, higher than normal in securities litigation. Attorneys for the plaintiffs argued vociferously that the settlement represented a good deal for the investors.
“While plaintiffs believe the merits of the case are strong, the proposed settlement is an excellent result and is in the best interests of the settlement class in light of the risks and costs of litigating this action through trial,” the plaintiffs said.
Settlement of Fitbit Inc (NYSE: FIT) Shareholder Lawsuit
Fitbit Inc (NYSE: FIT) investors may be able to collect significant financial compensation for their losses. The recent settlement with the company has set aside tens of millions of dollars for compensating shareholders.
Own shares of Fitbit Inc (NYSE: FIT) ? Fitbit Inc (NYSE: FIT) Shareholder Lawsuit Settlement. Contact us to protect your rights.
If you have purchased shares of Fitbit Inc (NYSE: FIT), complete the form on this page or call 1-800-934-2921 right now to protect your rights.