The shares of GoPro, the maker of the most versatile action camera, are trading lower today. The stock price of the company was down 2.58% to $28.33 per share at the time of this writing around 2:51 in the afternoon in New York.

GoPro

GoPro was negatively impacted by the announcement of law firm Bottini & Bottini that it is investigating the company on behalf of individual and institutional investors who purchased its stock between June 26 and January 13, 2015.

The law firm’ investigation is focused on whether GoPro, its underwriters and some of its officers violated federal securities laws by release false or misleading statement or omitting material information from its registration statement related to its initial public offering (IPO) on June 26, last year.

The company issued additional 10.3 million shares of its common stock for $75 a piece on November 20, 2014. The law firm is investigating whether GoPro’s registration statements related to its IPO and SPO contained false or misleading statements or if the company failed to disclose material information required by federal securities laws such as the impact of competition and pricing pressures on its margins.

GoPro stock performance

During its IPO, GoPro sold approximately 17.8 million shares of its common stock for $24 per share. The stock price of the company surged more than 100% to $48 per share in less than a week. In fact, the stock reached as much as $98.47 per share on October 7, 2014.

Data from Google Finance showed that GoPro shares traded between $27.07 and $89.99 per share over the past 52-weeks. The company lost more than 66% in stock value over the past year or 55% year-to-date.

GoPro negatively impacted by Ambarella news

Last month alone, GoPro’s stock price declined 33%, according to data from S&P Capital IQ. The decline was primarily caused by the report that Ambarella was expecting lower revenue from wearable cameras sequentially and year-over-year. Ambarella is the only semiconductor supplier for GoPro.

Ambarella CFO George Laplante previously stated, “As we discussed in our Q1 earnings call, wearable camera revenues are expected to be down sequentially and year-over-year, reflecting the substantial build of newly released and existing products in Q2 of this year by GoPro and Xiaomi, rather than in Q3 as occurred in the prior years.”

Based on the expectations of Ambarella, investors made a conclusion that GoPro may not release a new product during the holiday season—an implication that its only new camera until next year would be the Hero4 Session. It is still uncertain if GoPro will release a new camera for the holiday season.