Pomerantz Law has announced it is launching an investigation of Sonos, Inc (Nasdaq: SONO) on behalf of investors. The firm says that this action is being taken to investigate claims surrounding the company’s handling of its 2024 app disaster and whether certain Sonos officers and/or directors “have engaged in securities fraud or other unlawful business practices.”
See more on this investigation of Sonos
So, let me start by saying that this type of announcement is not uncommon on Wall Street. Whenever a company undergoes some kind of traumatic incident, it is susceptible to allegations that its management was not completely forthcoming of both the true nature and damaging depth of the matter as is legally required. And that lack of transparency ends up causing investors to lose more money than they should have had they been provided with a truer picture of the situation.
In many cases, these matters quietly disappear, either because the investigation fails to uncover genuine evidence of wrongdoing by the company…or because evidence is uncovered and the company negotiates a confidential settlement with the parties. Occasionally, an ugly public fight ensues.
Why This News Caught My Attention
This particular incident caught my attention as the Pomerantz firm is a well-respected investor advocate litigator, and it has a strong record of recovering large settlements on behalf of investors. It remains to be seen where this investigation goes, but Pomerantz tends to only take high-percentage shots.
Another reason that this issue caught my attention is that I, too, once celebrated this company’s innovation. Sonos, after some experimentation and adjustment, really conceived of an entirely new way to offer consumers wireless music systems throughout their homes. They ended up offering a new concept in system design that is easy to set up and operate via app – an emerging control solution embraced by many. It was really savvy and they created a whole new audio experience popular with consumers.
How Did Sonos Botch Its App Update So Severely?
How could such an innovative company BOTCH its recent app update SO BADLY?!?! It defies logic that a company that did so many things right…went completely wrong on this app update. It tends to suggest that other factors may be in play… It’s totally speculation, but I’ve heard knowledgable people suggest that former CEO Patrick Spence – perhaps because of building pressure over delays in getting Ace headphones launched – knowingly pushed the button on an app he knew was defective in order to get Ace into the marketplace.
That’s a scenario that’s hard for me to countenance. I’ve heard speculation on other scenarios also calling management’s ethics into question.
From the Pomerantz Announcement…
On May 7, 2024, Sonos launched a redesigned app that was plagued with significant issues, with users unable to perform essential functions like accessing or searching their music libraries, setting sleep timers, or even downloading the app. On October 1, 2024, following ‘an internal review of its app release in May’, Sonos issued a press release acknowledging ‘missteps’ and reporting that ‘no member of the Executive Leadership Team will accept any annual bonus payout for the October 2024 – September 2025 fiscal year unless the company succeeds in improving the quality of the app experience and rebuilding customer trust.
From – INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Sonos, Inc.
The announcement goes on to note the correlation between various Sonos app-related announcements and the resulting drop in the value of SONO stock.
Sonos Investors: More Information Here
Pomerantz is inviting investors who are holding shares of SONO to reach out to them for more information and to share their stories. If you are an investor in Sonos, get more information at newaction@pomlaw.com, or call them at (646) 581-9980. ext/ 7980.
Learn more about Sonos at sonos.com.
See all about Pomerantz Law at pomlaw.com.
I’ve been battling this app since the update. My devices won’t show up in the app. I have to turn my alarm off by casting from my Spotify app to my speaker and then turn off whatever I casted. Once I cast to the speakers, the devices will sometimes show up on the app but they say they’re playing something completely different than it actually is. I can only control my system through my music apps. Cannot control thru the Sonos app at all. And yes, I did all the basic things already. We’ve spent far too much on this system to not be able to use it properly for this long. We already had a speaker stop working for no reason at all and Sonos would not do anyone to help us. Speaker was only a couple years old. Meanwhile, we’ve had our Bose for 16 years and still works great. Wish we would have never started building our home sound system around this unreliable company. Big waste of money and so much hassle.
April,
I’m sorry to learn of your troubles. I know it won’t make you feel any better, but you are part of a very large group of similarly situated users.
The company continues to update the app and squash more bugs. With a little luck they’ll squash yours and things will begin to improve.
Good luck!
Ted