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iRobot Corp. (IRBT) Accused of Channel-Stuffing

Following iRobot’s acquisition of two major industry distributors, iRobot Corp. (IRBT) reported explosive, double-digit revenue growth, with its officers and directors attributing its strong performance to growing demand for the Roomba line of products, expanded gross margin, and technological innovation.  iRobot’s revenue may have actually been the result of the Company’s channel-stuffing to artificially boost its sales and revenue numbers. On April 23, 2019, the Company announced shockingly disappointing quarterly revenue results below analyst expectations and surging inventory levels. Then, on July 23, 2019, the Company drastically slashed its full-year earnings forecast. Finally, on October 22, 2019, iRobot cut its high end of its revenue expectations for the year, rolled back price increases due to a “suboptimal” customer response, and increased inventory levels yet again. Following these disclosures, iRobot’s stock price fell a total of $81.51, or 62%, to close at $49.06.

If you are a concerned shareholder who owns shares in IRBT and would like more information about your rights and potential remedies you can call us toll-free at 855-846-6529 or send us a message via the Shareholder Information below or by email to tmiles@timmileslaw.com.

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