GoPro Announces Recall Of 2,500 Karma Drones, Shares Fall 10%

Shares of GoPro Inc GPRO tumbled about 10 percent Wednesday after the company announced a recall of 2,500 units of brand new drone product called Karma.

GoPro announced Tuesday evening it's recalling the approximately 2,500 Karma drones that were purchased by consumers since October 23. The recall was deemed to be necessary after the company discovered that in a "very small number of cases," the drone lost power while flying in the air.

There have been no reported injuries or property damage so far.

Consumers who bought the drone can return it at the place of purchase for a full refund or by visiting www.gopro.com/2016karmareturn.

Replacement units are not yet offered and once the issue is resolved it will resume shipments.

"Safety is our top priority," said GoPro Founder and CEO Nicholas Woodman. "A very small number of Karma owners have reported incidents of power failure during operation. We have moved quickly to recall all units of Karma and provide a full refund while we investigate the issue.

"We are working in close coordination with both the U.S. Consumer Product Safety Commission and Federal Aviation Administration. We are very sorry to have inconvenienced our customers and we are taking every step to make the return and refund process as easy as possible."

Shares traded recently at $9.91, down 8.7 percent.