NEW YORK, Feb. 20, 2015 /PRNewswire/ -- Pomerantz LLP has
filed a class action lawsuit against InvenSense, Inc. ("InvenSense"
or the "Company")(NYSE: INVN) and certain of its
officers. The class action, filed in United States
District Court, Northern District of California, and docketed under 15-cv-00142, is
on behalf of a class consisting of all persons or entities who
purchased InvenSense securities between July
29, 2014 and October 28, 2014,
inclusive (the "Class Period"). This class action seeks to
recover damages against Defendants for alleged violations of the
federal securities laws under the Securities Exchange Act of 1934
(the "Exchange Act").
If you are a shareholder who purchased InvenSense securities
during the Class Period, you have until March 8, 2015 to ask the Court to appoint you as
Lead Plaintiff for the class. A copy of the Complaint can be
obtained at www.pomerantzlaw.com. To discuss this action,
contact Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
InvenSense designs, develops, markets and sells Micro-Electro-
Mechanical Systems ("MEMS") sensors, such as accelerometers,
gyroscopes and microphones for consumer electronics. The Company
targets sales of its products to manufacturers of smartphones and
tablets, console and portable video gaming devices, and other types
of consumer electronics.
The Complaint alleges that 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 had negatively
impacted, and would continue to negatively impact,
InvenSense's margins. Instead of revealing the Company's true
financial 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.
On October 28, 2014, the Company
announced disappointing financial results for the second quarter of
fiscal year 2015, ended Sept. 28,
2014. Net revenue for the second quarter fiscal 2015 was
$90.2 million, up 35 percent from
$66.7 million for the first quarter
fiscal 2015. Gross margin determined in accordance with U.S.
generally accepted accounting principles (GAAP) for the second
quarter of fiscal 2015 was 35 percent, compared with 47 percent for
the first quarter of fiscal 2015 included stock-based compensation
and related payroll taxes, and amortization of acquisition
intangibles.
On this news, shares of InvenSense fell $5.10 per share, or more than 23.74%, to
$16.08 per share on October 29, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP