iRobot Investor Sues Brass Over Survival Without Amazon Deal (1)

iRobot Corp. management exaggerated the effectiveness of its turnaround after the abandoned Amazon Inc. acquisition, prompting a record selloff when the robot vacuum maker said there was substantial doubt about its ability to survive, a lawsuit said.

iRobot cast doubt over its future while reporting disappointing fourth quarter and full year 2024 financial results on March 12. Share prices plummeted almost 36% that day—the stock’s biggest single-day plunge since iRobot’s 2005 market debut, according to data compiled by Bloomberg. The stock price tumbled almost 52% over two trading sessions to close at $3.06 per share on March 13, 2025.

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