iRobot Investors Sue After Post-Amazon Collapse and Stock Crash – What You Need to Know

Court: S.D. New York

Case: 1:25-cv-05563

iRobot IRBT is facing a lawsuit from investors who say the company overstated its ability to survive after the terminated Amazon acquisition, misrepresented the success of its restructuring plan, and hid severe financial deterioration. This case follows a 51.6% stock collapse in March 2025.

What Really Happened After the Amazon Deal Fell Apart

In January 2024, iRobot tried to reassure investors with the “iRobot Elevate” plan after Amazon walked away from its $1.7 billion acquisition. It promised a turnaround through cost cuts, new product launches, and fresh partnerships. The company claimed it was financially stable and positioned for long-term growth.

However, internal data showed losses piling up far beyond guidance, margins collapsing from 24–27% down to just 9.5%, and a $61 million operating loss in Q4 2024. Executives also quietly dealt with massive inventory write-offs and risky supplier agreements.

The Collapse That Triggered the Lawsuit

By March 2025, iRobot issued a warning that there was “substantial doubt” about its ability to continue as a going concern, and IRBT crashed 51.58% in two days.

Investors Push Back

Shareholders filed suit, alleging that iRobot misled them by overstating its ability to operate independently after the Amazon deal failed, hiding financial losses and operational risks, and misrepresenting the benefits of its restructuring plan.

What Investors Can Do Now

If you purchased or held IRBT shares during the affected period (January 29, 2024, and March 11, 2025), you can join the case to receive updates and be notified about potential recovery. You can also apply to serve as lead plaintiff for the case.