iRobot Directors, Officers Hit With Suit Over Failed Amazon Deal

The directors and officers of iRobot Corp. are facing a shareholder derivative action alleging they injured the company by concealing due diligence issues and regulatory red flags with Amazon.com Inc.'s attempted $1.4 billion buyout of the Roomba vacuum cleaner manufacturer.

The defendants, “in breach of their fiduciary duties owed to iRobot,” made false and misleading statements that opened up the company to a securities fraud class action, according to the complaint filed in the US District Court for the District of Massachusetts.

The complaint alleges the defendants didn’t disclose to investors that the proposed sale was unlikely to win approval ...