iRobot Sued Over Due Diligence, Regulatory Issues in Amazon Deal

iRobot Corp. and its top executives concealed due diligence issues and regulatory red flags with Amazon.com Inc.’s attempted $1.4 billion buyout of the Roomba vacuum cleaner manufacturer, a proposed shareholder class action says.

The company didn’t disclose to investors that the proposed sale was unlikely to win approval from US and European antitrust regulators, given Amazon’s already significant position in the market for robot vacuum cleaners, according to the complaint filed March 8 in US District Court for the District of New Jersey.

The companies opted to drop the merger on Jan. 29, filing a joint statement that cited ...