Robbins Arroyo LLP: InvenSense, Inc. (INVN) Misled Shareholders According to a Recently Filed Class Action
January 08 2015 - 6:50PM
Shareholder rights law firm Robbins Arroyo LLP announces that an
investor of InvenSense, Inc. (NYSE:INVN) has filed a federal
securities fraud class action complaint in the U.S. District Court
for the Northern District of California. The complaint alleges that
the company and certain of its officers and directors violated the
Securities Exchange Act of 1934 between July 29, 2014 and October
28, 2014. InvenSense designs, develops, markets, and sells
Micro-Electro-Mechanical Systems sensors for consumer electronics.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/invensense-inc
InvenSense Is Accused of Misleading
Investors
According to the complaint, shares of InvenSense declined $5.40
per share, or 25%, to close at $16.08 per share on October 29,
2014, following the release of disappointing financial results for
the second quarter ended September 28, 2014. Specifically, despite
having previously issued strong sales guidance, InvenSense reported
a net loss of $6.868 million. Further, InvenSense reported
disappointing GAAP gross margins of only 35% and non-GAAP gross
margins of 37%, compared to 47% for GAAP gross margins and 50% for
non-GAAP gross margins, for the first quarter of 2015. The
complaint further notes that the company knew but failed to
disclose to the public that the following facts would negatively
impact its financial performance: (i) its contracts with major
retailers were made at low price points that would negatively
impact the company's profitability; (ii) InvenSense was
experiencing manufacturing inefficiencies; and (iii) InvenSense had
a large stockpile of old inventory that needed to be written off
due to lack of demand.
InvenSense Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
CONTACT: Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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