InvenSense, Inc. Securities Litigation
Berger Montague has filed a class action in the U.S. District Court for the Northern District of California on behalf of all purchasers of InvenSense, Inc. (“InvenSense” or the “Company”) (NYSE: INVN) common stock between July 29, 2014 and October 28, 2014, inclusive (the “Class Period”).
Investors who purchased InvenSense common stock during the Class Period may move the Court to appoint them as lead plaintiff, no later than March 9, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
The Complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements related to the Company’s financial performance and future prospects, specifically that management failed to disclose the extent to which the Company’s performance and margins were affected by discounts offered to its major customers, including Samsung and Apple, Inc. Instead, defendants issued strong guidance throughout the Class Period. As a result, InvenSense shares traded at inflated prices, rising as high as $25.85 per share, and allowing Company insiders to substantially profit through sales of their personally held stock.
On October 28, 2014, InvenSense announced financial results for the quarter ended September 28, 2014. In particular, defendants disclosed a significant drop in margins due in large part to the discounts it offered to its customers as well as operational inefficiencies related to the iPhone 6 rollout, and a charge related to old inventory. On this news, the price of InvenSense shares plummeted more than 25% in a single-day, to close at $16.08 per share on October 29, 2014.
Investors in InvenSense who wish to discuss this action or the lead plaintiff selection process may contact Berger Montague, toll free at 1-888-891-2289, or by e-mail at email@example.com.
A copy of the class action complaint can be viewed here.