January 12, 2016
Bernstein Liebhard LLP today announced that a securities class action has been filed in the United States District Court for the Northern District of California on behalf of a class (the “Class”) consisting of all persons or entities who purchased Fitbit Inc. (“Fitbit” or the “Company”) (NYSE:FIT) securities either traceable to the Company’s initial public offering on or about June 18, 2015, and/or on the open market between June 18, 2015 and January 6, 2016 (the “Class Period”). The complaint charges Fitbit and certain of its officers with violations of the Securities Act of 1933 and Securities Exchange Act of 1934.
Fitbit manufactures and sells wearable fitness tracking devices worldwide. The Company combines connected these fitness devices with software and services, to monitor and track a user’s health and fitness activity. Among the Company’s products are Fitbit Charge HR (“Charge HR”), a wireless wristband that tracks heart rate and activity, and Fitbit Surge (“Surge”), a fitness smartwatch that contains GPS, and tracks heart rate and activity.
The complaint charges Fitbit and certain of its officers with violations of the federal securities laws. Specifically, the complaint alleges that throughout the Class Period, defendants failed to disclose that: (1) Fitbit’s heart rate monitoring technology did not consistently deliver accurate heart rate readings during exercise; (2) the inaccuracy of Fitbit’s heart rate monitoring technology posed serious health risks to users of Fitbit’s products; and (3) as a result, Fitbit’s public statements were false and/or misleading.
On January 6, 2016, a class action lawsuit was filed against Fitbit in the U.S. District Court for the Northern District of California, alleging that the heart rate monitoring systems on the Company’s Charge HR and Surge devices were dangerously inaccurate and posed serious health risks to users (McLellan et al. v. Fitbit, Inc., 3:16-cv-00036 (N.D. Cal. Jan. 5, 2016). The claims against Fitbit include violations of California’s Unfair Competition Law and Consumers Legal Remedies Act, common law fraud, and unjust enrichment.
On this news, Fitbit’s stock fell $1.40, or 5.8%, to close at $22.90 on January 6, 2016.
Plaintiffs seek to recover damages on behalf of all Class members who either purchased Fitbit securities either traceable to the Company’s initial public offering or invested in Fitbit securities during the Class Period. If you invested in Fitbit securities as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than March 11, 2016.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Northern District of California.