Scott+Scott Attorneys at Law LLP Reminds Investors of Securities Class Action Against Arlo Technologies, Inc. (ARLO) and March 25 Lead Plaintiff Deadline
NEW YORK--(BUSINESS WIRE)--Mar 19, 2019--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, reminds investors that a federal class action lawsuit has been filed against Arlo Technologies, Inc. (“Arlo” or the “Company”) (NYSE: ARLO) and certain of its officers and directors (collectively, “Defendants”). If you purchased Arlosecurities pursuant and/or traceable to the Company’s initial public offering (“IPO”) in August 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for more information. The lead plaintiff deadline is March 25, 2019.
Arlo provides smart connected devices that can purportedly monitor environments in real-time using its cloud-based platform.
The complaint alleges that Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) there was a flaw and/or quality issue with Arlo’s newly designed battery for its Ultra camera systems; (ii) this flaw and/or quality issue with the Ultra battery could result in a shipping delay of Arlo’s Ultra product; (iii) such a shipping delay endangered Arlo’s chances of launching the Ultra product in time for the crucial holiday season; (iv) such a shipping delay would allow Arlo’s competitors to capitalize on the Ultra product’s missed launch, thereby increasing their own market share; (v) Arlo’s consumers had been experiencing battery drain issues and other battery-related issues in connection with recent firmware updates; (vi) because of the foregoing, Arlo’s fourth quarter 2018 results and consumer base would be negatively impacted; and (vii) as a result, Arlo’s Registration Statement was materially false and misleading at all relevant times.
On December 3, 2018, Arlo reported a delay in shipments of Ultra, citing “a quality issue with the battery from one of its suppliers” that was discovered during the product’s final testing phase. As a result of the delay, Arlo also lowered its fourth quarter 2018 financial guidance, advising investors that it anticipated “net revenue to be in the range of $125 million to $130 million, non-GAAP gross margin to be approximately 10%, and non-GAAP operating loss to be approximately 20% of revenue.”
Following this news, Arlo’s stock price fell $2.75 per share, or 22.86%, to close at $9.28 on December 3, 2018. This constituted a decline of $6.72, or approximately 42%, from the IPO price of $16.00 per share.
What You Can Do
If you purchased Arlo securities in or traceable to the Company’s IPO, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at firstname.lastname@example.org.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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CONTACT: Joe Pettigrew
Scott+Scott Attorneys at Law LLP
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SOURCE: Scott+Scott Attorneys at Law LLP
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PUB: 03/19/2019 11:41 AM/DISC: 03/19/2019 11:41 AM