A class action lawsuit was the last thing Fitbit Inc. needed at a time when it is still struggling with a string of bad news. The stock tumbled by as much as 18% on the company unveiling a new smartwatch the Blaze that is the subject of inaccurate heart rate readings concerns.
Concerns over Inaccurate Readings
PurePulse is the technology that that three plaintiffs are challenging as part of the Class action lawsuit. The technology has already found its way in Charge HR and Surge devices. Apple Watch and other competing fitness trackers also use a similar technology. According to the plaintiff’s they were duped into buying Fitbit Inc devices on the promise they would accurately track their rates. However, as it turned out, that was not the case.
One of the plaintiffs alleges that he had a trainer manually count her heart rate during a workout which he found out to be 160 beats per minute. That is nearly double the 82 beats per minute reading that was captured by her Fitbit Charge HR. Two other plaintiffs are also raising similar concerns with the company’s product.
Fitbit Unending Woes
A cardiologist concluding that Fitbit Inc’s heart rate sensor continues to provide inaccurate results all but continues to erode trust in the company’s products. The company has already downplayed the allegations that its product always fail to record a heart rate at all.
“We do not believe this case has merit. Fitbit stands behind our heart rate technology and strongly disagrees with the statements made in the complaint and plans to vigorously defend the lawsuit,” Fitbit in a statement.
The lawsuit is all but part of a big puzzle that Fitbit Inc will have to grapple with for the better of the year. The stock is already down by 40%, days into the New Year as investors continue to ask tough questions. Cheaper rivals entering the fitness trackers business has all but continued to dent the company’s prospects in the business. Failure to price products competitively against comparable products means the company will continue to struggle on the sales front.