Arlo Technologies Inc. was sued for records in Delaware Friday by an investor seeking to probe claims that the wireless security camera maker hid critical battery problems before its 2018 initial public offering.
The Chancery Court lawsuit targets statements the former Netgear Inc. subsidiary made about its projected fourth quarter 2018 earnings before going public that August at $16 a share. The predictions allegedly priced in the success of Arlo’s top product candidate, a 4K HD camera called the Ultra.
But news of the Ultra’s delays due to previously undisclosed battery issues sent the company’s stock tumbling more than 40% ...
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