Is Karma coming back to provide additional Karmic points to Go Pro or as they would say in the drone farming community, is the chicken coming home to roost? Go Pro had started their drone adventure as a way to diversify their business. Unfortunately, much continues to go on with their debacle. At this time, there are three different lawsuits just adding to the string of mishaps that Go Pro has faced. Here is a list of the three lawsuits Go Pro is facing which in a nutshell are variations of the same lawsuit:
Photo by The Verge
Khang and Khang Go Pro Lawsuit – Inflated sales figures?
The law firm of Khang and Khang recently announced the lawsuit for those who purchased or acquired stocks from the camera company. In the complaint filed by Khang and Khang, they state that Go Pro made false and misleading statements to investors and failed to disclose Karma’s defective drone to lose power mid flight which would result in the drone falling out of the sky. The company also over-emphasized the demand for Karma when it was known of the loss of power. The end result was that the public statements were deceptive. Coupled with disappointing third quarter results, the shares plummeted causing a decline of value.
Shareholders Foundation shares on the misery of a disappointing Go Pro Lawsuit.
Lawsuits for Go Pro are ongoing and one of many as a result of a disappointing performance of the Karma. In fact, the company Shareholders Foundation were also filed over alleged Securities Laws violations on Oct 5, 2016. The lawsuit suggested that the company was experiencing weak sales of its Hero line of cameras throughout the period of the third quarter and that the company had inflated sales figures of the Hero line.
Robbins Arroyo Go Pro Lawsuit of a Go
A third lawsuit was also provided by Robbins Arroyo LLP for the same reason: Go Pro’s failure to disclose that Karma drones were losing power during its midflight. The lawsuit maintains that when Go Pro launched the Karma, it claimed that the drone packed Hollywood-caliber aerial, handheld, and gear-mounted image stabilization into a backpack for $799. Unfortunately, inflated demand for the Karma drone resulted in an even more costly drone recall. Since the announcement of the recall, Go Pro’s stock as fell 19 percent to 10.41 a share in November.
The Karma had started off as a terrific idea and an obvious one as well. Considering that this was a way for the company to incorporate its camera for use on drones, it seems that the company has more problems than the drone was worth. The impression that the company was not so forthcoming may only be a bigger indication that there are some serious leadership issues going on with the company’s closed doors. Perhaps the name Karma is a bit of irony.
