EXCLUSIVE: Questionable Class Action Move Against Arlo Over 4K Ultra Camera
A US legal firms is trying to get a class action up against the recently spun out Arlo home security Company claiming the battery failure of their new Ultra 4K camera has impacted investor.
Arlo which was spun out from Netgear recently suspended the roll out of their new Ultra 4K camera’s due to a technical issue which the Company is confident can be fixed.
One US legal Company Levi & Korsinsky has already filed a complaint that alleges that the Registration Statement filed by Arlo made materially false and misleading statements and that the Company failed to reveal that there was a battery flaw with the new Ultra Camera system.
Levi & Korsinsky state in their claim that the quality issue associated with the Ultra battery resulted in a shipping delay of Arlo’s Ultra products and that this impacted shareholders ahead of the “crucial holiday season”.
The lawyers claim that such a shipping delay endangered Arlo’s chances of launching the Ultra product and that shareholders should have been told.
They further claim that the shipping delay allowed Arlo’s competitors to capitalize on the Ultra product’s missed launch however they fail to identify which competitors benefited or which competitors actually had a competitive camera to the new Arlo 4K Ultra offering.
A visit to the Best Buy and Lowes US web sites reveals that the bulk of the 4K camera offerings are wired camera and the only listing on the Best Buy site is a camera from unknown brand Lorex who are offering a US $169 outdoor Wi Fi Camera.
Levi & Korsinsky claim that Arlo’s consumers had been experiencing battery drain issues and other battery-related issues in connection with recent firmware updates.
They claim that because of these problems Arlo’s fourth quarter 2018 results and consumer base would be negatively impacted rendering Arlo’s Registration Statement materially false.
Arlo Australia has not commented on the issue other than to say that the roll out of the 4K camera has been delayed in Australia.