Fitbit, Inc. (FIT) Accused of Failing to Disclose Impact of Competitive Pressures
According to the complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between August 2, 2016 and January 30, 2017, Fitbit, Inc. (FIT) touted that the company was on the cusp of transitioning its mission from a consumer electronics company to a digital healthcare company and that it sold the number one best-selling fitness tracker on Amazon. However, Fitbit was struggling to differentiate itself from Apple Inc., leading to slowing demand for Fitbit’s products. On November 2, 2016, Fitbit released disappointing financial results and lowered its full year 2016 revenue guidance. The company again lowered its guidance in January 2017. Since Fitbit’s financial outlook started declining, the company’s stock price lost over half of its value, closing at $6.06 per share on January 30, 2017. Nearly two years later, Fitbit trades at approximately the same price.
Fitbit, Inc. (FIT) Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.