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Kessler Topaz Meltzer & Check, LLP Announces Investor Securities Fraud Class Action Lawsuit Filed Against Fitbit, Inc. - FIT

November 12, 2018

RADNOR, Pa., Nov. 12, 2018 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP reminds that an investor securities fraud class action lawsuit has been filed in the United States District Court for the Northern District of California against Fitbit, Inc. (NYSE: FIT) (“Fitbit”) on behalf of purchasers of Fitbit securities between August 2, 2016 and January 30, 2017, inclusive (the “Class Period”).

Fitbit investors who purchased securities during the Class Period may, no later than December 31, 2018, seek to be appointed as a lead plaintiff representative of the class.

Investors who wish to discuss this securities fraud class action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys James Maro, Jr. or Adrienne Bell at (888) 299-7706 or online at: www.ktmc.com/fitbit-2018-securities-class-action

According to the complaint, Fitbit claims to be a technology company focused on health-related devices. Fitbit’s products purportedly include wearable devices – health and fitness trackers and smartwatches – that enable users to view data about their daily activity, exercise, and sleep, in real-time.

The Class Period commences on August 2, 2016, when Fitbit issued a press release entitled “Fitbit Reports $587M Q216 Revenue, $0.03 GAAP EPS/$0.12 Non-GAAP EPS, and Confirms Revenue and Profit Guidance for FY16.”

According to the complaint, on November 2, 2016, Fitbit issued a press release announcing its third quarter 2016 financial results. In the press release, Fitbit disclosed that it was lowering its full year 2016 revenue guidance to “between $2.320 billion and $2.345 billion,” down from the previously announced “$2.5 to $2.6 billion.” Following this news, Fitbit’s share price fell $4.30 per share, or 33.6%, to close at $8.51 per share on November 3, 2016.

Then, on January 30, 2017, Fitbit issued a press release announcing its preliminary fourth quarter 2016 financial results. In the press release, Fitbit disclosed that it expected fourth quarter of 2016 revenue to be in the range of $572 million to $580 million, rather than its previously announced guidance range of $725 million to $750 million. Fitbit also disclosed expected annual revenue growth of approximately 17%, rather than the previously announced forecast of 25% to 26%. Following this news, Fitbit’s share price fell $1.15 per share, or 16%, to close at $6.06 per share on January 30, 2017.

The complaint alleges that throughout the Class Period, the defendants failed to disclose that: (1) Fitbit was struggling to transition its mission and differentiate itself from Apple Inc. and other competitors; (2) as such, Fitbit was experiencing increased competition; (3) as a result, demand and sell-through for Fitbit’s existing and new products were being negatively impacted; (4) as a result, Fitbit’s sales and financial results were weakening, and growth was slowing; (5) Fitbit’s financial guidance was overstated; and (6) as a result of the foregoing, the defendants’ statements during the Class Period about Fitbit’s business, operations, financial results and prospects, were materially false and/or misleading and/or lacked a reasonable basis.

Fitbit investors may, no later than December 31, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Returning any form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.

Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.

CONTACT:

Kessler Topaz Meltzer & Check, LLP James Maro, Jr., Esq. Adrienne Bell, Esq. 280 King of Prussia Road Radnor, PA 19087 (888) 299-7706 (610) 667-7706 info@ktmc.com

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