In a development that could have far-reaching implications for investors and corporate accountability, Pomerantz LLP has filed a class action lawsuit against iRobot Corporation and several of its senior executives. The suit, brought on behalf of investors who acquired iRobot securities between January 29, 2024, and March 11, 2025, alleges that the company misled shareholders about its financial health and future stability following the collapse of its proposed merger with Amazon.

Once hailed as a pioneer in home robotics, iRobot rose to fame with its Roomba robotic vacuum cleaners. But in recent years, the company’s dominance has eroded amid rising competition and shrinking market share. Hopes were revived in August 2022 when Amazon announced plans to acquire iRobot for $61 per share, a deal that gave many investors reason to believe in a turnaround. CEO Colin Angle, at the time, called the deal a perfect match, sharing his excitement about the future with Amazon.

However, those hopes were dashed in January 2024 when both companies announced the termination of the deal, citing insurmountable regulatory roadblocks in the European Union and reported pressure from U.S. regulators. The news hit hard: not only did the acquisition fall through, but iRobot also revealed that its longtime CEO Colin Angle would step down, and that it would lay off nearly a third of its workforce.

In the aftermath, iRobot attempted to reassure the market, emphasizing its standalone strength and unveiling a restructuring initiative dubbed “iRobot Elevate.” This plan, they claimed, would stabilize the company, sharpen its focus on profitability, and allow it to grow within the mid-tier and premium robotics market.

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But according to the newly filed lawsuit, much of this messaging was misleading. Plaintiffs argue that iRobot overstated the effectiveness of its restructuring efforts and downplayed the financial turmoil brewing behind the scenes. As alleged in the complaint, iRobot failed to disclose that its standalone viability was in serious doubt, even as it projected confidence to the public.

That skepticism became all too true in March 2025 when iRobot reported bleak Q4 and full-year 2024 financials, reporting a whopping 44% year-over-year decline in revenue and alerting investors that there was “substantial doubt” regarding its capacity to continue as a going concern. The firm also suspended its earnings call and refused to offer any guidance for 2025. In just two days, the firm’s stock plummeted by more than half its value.

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Analysts didn’t mince words. Outlets like Seeking Alpha and The Motley Fool called attention to worsening margins, ballooning losses, and failed restructuring efforts, with some suggesting iRobot’s survival was now dependent on the success of new products—a gamble with no guaranteed payoff.

While a short squeeze in May 2025 temporarily lifted iRobot’s stock price following a delay in U.S. tariffs on European imports, most experts remained skeptical. Underneath the market fluctuations, they noted, the company’s fundamentals were still deteriorating, marked by ongoing cash burn, shrinking reserves, and fading consumer demand.

This lawsuit represents a critical moment for shareholders who feel misled and financially harmed. Pomerantz LLP, one of the most respected names in securities litigation, is leading the charge. With a long history of holding companies accountable for corporate misconduct, the firm now seeks justice for those who placed their trust—and money—in a company that may have hidden more than it revealed.

Investors who acquired iRobot securities during the class period have until September 5, 2025, to seek appointment as lead plaintiff in the case.

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