Securities Class Action Filed Against InvenSense, Inc.
Violations of federal securities laws as a result of a series of materially false statements. 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 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 InvenSense’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. Filed in N.D. Cal.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 3/9/2015.
Join This Action: To apply to join this action and be represented by Shepherd, Finkelman, Miller & Shah, LLP, please click here for a certification form to submit your information.
Send Us Information: If you have information about this action that you would like to provide us, please click here.