Legal Investigations Commence Into GoPro Concerning Karma Drone Recall

BusinessWire has  just released two ‘alerts’ via their platform for the attention of investors and shareholders. The alerts relate to GoPro and their handling of the Karma drone recall. This will deeply unsettle already frustrated consumers.

The content of each respective alert differs slightly although essentially the message is the same, prompting GoPro consumers, investors and shareholders to participate in a class-action suit against GoPro concerning possible violations of federal securities laws.

GoPro Share Price Drop Since Karma Recall
GoPro Share Price Drop Since Karma Recall

The two notices could be deemed simply as advertising by two hopeful law-firms but if proven to be popular amongst shareholders and investors, it could be very damaging for an already declining GoPro stock price.

GoPro Karma and Hero5 Launch
CEO Nick Woodman at the GoPro Karma and Hero5 Launch

The ‘investor’ alert contains the following description.

[perfectpullquote align=”full” cite=”” link=”” color=”” class=”” size=””]”The investigation focuses on whether GoPro and certain of its officers and/or directors violated federal securities laws. On November 8, 2016, the Company announced a recall of all of its Karma drones, due to instances where “units lost power during operation.” GoPro also announced disappointing third-quarter 2016 financial results on November 4, 2016. When this information was released, shares of GoPro fell in value.”[/perfectpullquote]

Whilst the ‘shareholder’ alert contains a slightly different statement, but ultimately describes the same intention.

[perfectpullquote align=”full” cite=”” link=”” color=”” class=”” size=””]”The investigation concerns whether GoPro and certain of its officers and/or directors violated federal securities laws. On November 8, 2016, the Company announced a recall of all of its Karma drones, due to instances where “units lost power during operation.” GoPro also announced disappointing third-quarter 2016 financial results on November 4, 2016. When this news was announced, shares of GoPro fell in value.”[/perfectpullquote]

The two alerts would appear to be appealing for those financially involved in GoPro to contact the respective law firm, the intention being to seek compensation of damages as a result of the GoPro Karma recall and the way in which the process was managed.

GoPro Karma Recall and Refund Programme, announced earlier this week by GoPro
GoPro Karma Recall and Refund Programme, announced earlier this week by GoPro

DroningON has contacted Goldberg Law and Khang Law to ask for clarification of the intention, as well as the justification for the investigation in relation to ‘federal law’ offences. We will update this article when we receive a response.

You can review both of the alerts in full via the following links:


Did you order a GoPro Karma or are you a shareholder/investor? How do you feel about the recall? Be sure to comment below and also to join the DroningON Discussion Group.

NOTE: Featured image courtesy of DigitalTrends.

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