Fitbit Unveils New Watch At CES ; Class Action Suits Hits Stock Hard

(RTTNews) - It was a day of mixed emotions for Fitbit (FIT) investors - the company unveiled a smart watch at the Consumer Electronics Show in Las Vegas but also saw a class action lawsuit being filed against it.

Fitbit, a dominant player in the connected health and fitness market, introduced the Fitbit Blaze smart fitness watch, its smartest, most stylish, most motivating fitness tracker so far. The watch is pitched against the Apple Watch.

Fitbit Blaze became available Monday for pre-sale with global retail availability starting in March. It is a smart fitness watch built to help make the most of workouts, with a versatile design to fit one's personal style. It has smart notifications as well.

The device is available for $199.95 for pre-sale on Monday at Fitbit.com and Tuesday at major North American retailers.

Meanwhile, consumers from California, Colorado, and Wisconsin filed a nationwide class action lawsuit against Fitbit, alleging that its wrist-based "Charge HR" and "Surge" heart rate monitors do not and cannot consistently record accurate heart rates during intense physical activity. It is for this activity that Fitbit expressly markets the devices in widespread advertising.

The suit alleges that the Heart Rate Monitors consistently mis-record heart rates by a significant margin, particularly during intense exercise.

Fitbit's Heart Rate Monitors do not accurately track users' heart-rates, much less "count every beat," particularly during the strenuous activities, the lawsuit said.

The stock plunged 18.4 percent to $24.30.