Robbins Geller Rudman & Dowd LLP Files Class Action Suit against InvenSense, Inc.
January 07 2015 - 8:19PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/invensense/) today announced that a
class action has been commenced in the United States District Court
for the Northern District of California on behalf of purchasers of
InvenSense, Inc. (“InvenSense”) (NYSE:INVN) common stock during the
period between July 29, 2014 and October 28, 2014 (the “Class
Period”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Samuel H. Rudman
or David A. Rosenfeld of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member
of this class, you can view a copy of the complaint as filed or
join this class action online at
http://www.rgrdlaw.com/cases/invensense/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges InvenSense and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
InvenSense designs, develops, markets and sells
Micro-Electro-Mechanical Systems sensors, such as accelerometers,
gyroscopes and microphones, for use in smartphones and tablets,
console and portable video gaming devices, and other types of
consumer electronics.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements regarding the
Company’s financial performance and outlook. Specifically,
defendants concealed the adverse effects the Company would
experience as a result of its agreement with Apple to supply
sensors for the iPhone 6 and iPhone 6 plus at heavily discounted
prices. The low prices charged to Apple, along with the low prices
charged to one of its other customers, had negatively impacted, and
would continue to negatively impact, the Company’s margins. Instead
of revealing the Company’s true condition and prospects, defendants
concealed these adverse facts from investors and chose to issue
strong guidance. As a result of defendants’ false and misleading
statements and/or omissions, InvenSense common stock traded at
artificially inflated prices during the Class Period, reaching a
high of $25.85 per share, allowing certain of the Company’s
insiders to sell their personally held stock at artificially
inflated prices for aggregate proceeds of over $5.3 million.
Then, on October 28, 2014, InvenSense announced disappointing
financial results for the quarter ended September 28, 2014, and
revealed a substantial drop-off in margins due in large part to the
low prices it had charged its customers, operational inefficiencies
with the iPhone 6 rollout, and a charge related to old inventory.
The Company’s announcements caused InvenSense shares to plummet
more than 25% in one day.
Plaintiff seeks to recover damages on behalf of all purchasers
of InvenSense common stock during the Class Period (the “Class”).
The plaintiff is represented by Robbins Geller, which has expertise
in prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S.
and international institutional investors in contingency-based
securities and corporate litigation. The firm has obtained many of
the largest securities class action recoveries in history,
including the largest securities class action judgment. Please
visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLPSamuel H. Rudman,
800-449-4900David A. Rosenfelddjr@rgrdlaw.com
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