GoPro hit with class action lawsuit over tumbling share prices

Last week, we shared the news that GoPro is planning on cutting back its workforce after shares dropped to an all-time low.

Now, we’ve learned that GoPro has yet another monkey on its back in the form of a lawsuit from investors.

The lawsuit, filed by Gainey McKenna & Egleston in California, claims GoPro management purposefully mislead investors about camera sales and didn’t take into account slowing growth into future projections.

Specifically, the lawsuit says GoPro deceived investors about the numbers behind GoPro’s Hero 4 Session camera, which were far lower than GoPro projected. Investors say the projected numbers were both ‘inflated and unrealistic,’ leading to financial loses for investors across the board.

Interestingly enough, this isn’t the first time GoPro’s Hero 4 Session camera has given them legal issues either. Last November, Polaroid sued GoPro for allegedly infringing upon a design patent held by Polaroid.

Next month GoPro will share its first-quarter numbers with investors, so it’s make-it-or-break-it time for the company.

Do you see them staying at the top of the game? Or has competition thinned out their market share, both in the action cam and drone market?

[via Bidness Etc]