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IROBOT ALERT: Bragar Eagel & Squire, P.C. is Investigating iRobot Corporation on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm

NEW YORK, July 25, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against iRobot Corporation (NASDAQ: IRBT) on behalf of long-term stockholders following a class action complaint that was filed against iRobot on March 8, 2024 with a Class Period from August 5, 2022 to January 26, 2024. Our investigation concerns whether the board of directors of iRobot have breached their fiduciary duties to the company.

iRobot designs, builds, and sells robots and home innovation products in the U.S., Europe, the Middle East, Africa, Japan, and internationally. The Company is primarily known for its robot vacuum cleaner ("RVC") products sold under the "Roomba" brand name.

In August 2022, iRobot and Amazon.com, Inc. ("Amazon"), which sells iRobot's RVCs on its online marketplace, announced their entry into a definitive merger agreement (the "Merger Agreement"), pursuant to which Amazon would "acquire iRobot for $61 per share in an all-cash transaction valued at approximately $1.7 billion, including iRobot's net debt" (the "Merger").

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Merger would place Amazon in a sufficiently dominant position in the market for RVCs that U.S. and European antitrust regulators were unlikely to approve the Merger; (ii) iRobot had conducted inadequate due diligence into the Merger and/or ignored significant risks weighing against the likelihood of regulatory approval; (iii) as a result of all the foregoing, iRobot overstated the likelihood for successfully completing the Merger; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.

On June 22, 2023, news outlets reported that Europe's antitrust regulator, the European Commission ("EC"), was planning to launch a full-scale investigation into the Merger.

On this news, iRobot's stock price fell $4.12 per share, or 8.32%, to close at $45.41 per share on June 22, 2023.

On November 27, 2023, the EC announced that it "has informed Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market for [RVCs]." In particular, the EC advised that, "[a]s a result of [its] in-depth investigation, the [EC] is concerned that Amazon may restrict competition in the European Economic Area (‘EEA')-wide and/or national markets for RVCs, by hampering rival RVC suppliers' ability to effectively compete" (emphasis in original).

On this news, iRobot's stock price fell $7.13 per share, or 17.19%, to close at $34.35 per share on November 27, 2023.

On January 10, 2024, news outlets reported that Amazon did not offer concessions to the EC to appease the regulator's concerns about the Merger. For example, POLITICO reported that day that "[t]he European Union's webpage on the deal shows that the companies didn't make an offer by the end of the day on Wednesday, its last chance to tackle European Union objections that Amazon could hamper rival vacuum cleaners' sales on Amazon's online marketplace."

On this news, iRobot's stock price fell $7.33 per share, or 19.77%, to close at $29.75 per share on January 10, 2024.

On January 18, 2024, the Wall Street Journal reported that "[t]he European Union's competition watchdog intends to block Amazon's $1.7 billion bid to purchase Roomba maker iRobot," citing "people familiar with the matter[.]"

On January 19, 2024, Bloomberg separately reported that the U.S. Federal Trade Commission ("FTC") was drafting a lawsuit to block the Merger.

Following these reports, iRobot's stock price fell $6.36 per share, or 26.93%, to close at $17.26 per share on January 19, 2024.

Then, on January 29, 2024, Amazon and iRobot announced their entry "into a mutual agreement" to terminate the previously announced Merger. Concurrently, iRobot announced the resignation of its Chief Executive Officer and Chairman of the Board of Directors, as well as plans to cut approximately 31% of its workforce.

Later the same day, Reuters reported that FTC staff had notified Amazon the week before that it planned to block the Merger.

Following these disclosures, iRobot's stock price fell $1.49 per share, or 8.77%, to close at $15.50 per share on January 29, 2024.

If you are a long-term stockholder of iRobot, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com


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