According to the Complaint, Fitbit claims to be a technology company focused on health-related devices. The Company’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 Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that the Defendants failed to disclose: (1) that the Company was struggling to transition its mission and differentiate itself from Apple Inc. and other competitors; (2) that, as such, the Company was experiencing increased competition; (3) that, as a result, demand and sell-through for the Company’s existing and new products were being negatively impacted; (4) that, as a result, the Company’s sales and financial results were weakening, and growth was slowing; (5) that the Company’s financial guidance was overstated; and (6) that, as a result of the foregoing, 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.
On April 25, 2019, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated amended Complaint on June 24. Defendants filed a Motion to Dismiss the consolidated amended Complaint on August 23. On March 23, 2020, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. Plaintiffs did not amend the Complaint, and on April 28, Judgment was entered by the Court's Clerk. Lead Plaintiff filed a notice appealing the Court's Dismissal Order on May 27.