iRobot Shareholders Drop Lawsuit Against Execs After Bankruptcy

Former iRobot Corp. shareholders voluntarily dismissed a suit alleging management exaggerated the effectiveness of its turnaround after the abandoned Amazon Inc. acquisition, given that those suing are no longer stockholders.

The robot-vacuum maker emerged from Chapter 11 bankruptcy last month as a private company, meaning the investors “ceased being iRobot stockholders and no longer have standing to pursue the derivative claims in this action,” they told the US District Court for the Southern District of New York Wednesday. Shareholders sued iRobot’s then officers and directors after casting doubt over its survival while reporting disappointing fourth quarter and full year 2024 ...