iRobot Investors Sue Over $71M Loss

iRobot said its Roomba comeback was ready to roll … but the only thing that got cleaned out was investors' wallets. After big promises about revenue and recovery, iRobot posted weak sales, a massive loss, and ditched its 2025 forecast. The stock short-circuited and lost 27%. Now, investors are suing.

Back in January 2024, iRobot pitched its "Elevate" restructuring plan after the Amazon buyout fell apart. Executives said they'd streamline costs, reclaim market share, and break even on earnings. The company kept up that message throughout the year.

The lawsuit says none of it was working. The company hid fading demand, rising competition from Chinese brands, and serious operational snags. Meanwhile, execs told the public everything was squeaky clean.

Then, in March 2025, the truth came out. iRobot missed revenue expectations and reported a $71 million net loss. They pulled guidance entirely. Investors dumped the stock, and it crashed out.

Now, more shareholders are joining the lawsuit.