Amazon’s $1.65 Billion Deal for iRobot Draws Investor Litigation

An investor sued iRobot Corp. in Delaware over concerns that its planned $1.65 billion sale to Amazon.com Inc., which shareholders approved in mid-October, may have been engineered to benefit the company’s co-founder at the expense of non-insiders.

The lawsuit, filed Monday, seeks internal documents from the Roomba vacuum maker to investigate allegations that Colin Angle was motivated by an $11 million golden parachute—and a promise that he could stay in the CEO job—to push a transaction that significantly undervalued iRobot.

Although the company’s financial advisers suggested a deal in the range of $65 to $70 a share, and Angle ...