Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against InvenSense, Inc.
January 30, 2015
Bernstein Liebhard LLP 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 (the “Class”) of common stock of InvenSense, Inc. (“InvenSense” or the “Company”) (NYSE: INVN) during the period of July 29, 2014 and October 28, 2014 (the “Class Period”).
InvenSense designs, develops and markets micro-electro-mechanical system gyroscopes for motion tracking devices in consumer electronics. The Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose to investors that: (a) the Company had entered into an agreement with Apple, Inc. to supply sensors for the iPhone 6 and iPhone 6 plus at heavily discounted prices compared to other customers; (b) the low prices charged to Apple, along with low prices charged to Samsung, had negatively impacted, and would continue to negatively impact, the Company’s margins; (c) InvenSense encountered manufacturing problems and inefficiencies which negatively impacted margins; (d) the Company lacked a reasonable basis to provide its stated near-term financial guidance or to assure investors that margins would be consistent with historical levels; (e) the Company’s Form 10-Q for the first quarter of 2015 failed to disclose then-known trends, events or uncertainties associated with the Company’s sales and margins that were reasonably likely to have a material effect on InvenSense’s future operating results; and (f) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s financial performance and outlook during the Class Period.
On October 28, 2014, the Company reported disappointing financial results for its second fiscal quarter ended September 28, 2014, including net revenue of $90.2 million and a net loss of $6.868 million. The Company also reported, among other things, disappointing GAAP gross margins of only 35% and non-GAAP gross margins of 37%, compared with GAAP gross margins of 47% and non-GAAP gross margins of 50% in the first quarter of fiscal 2015.
Following this news, InvenSense shares declined 25%, or $5.40 per share, to a closing price of $16.08 per share on October 29, 2014, on unusually heavy volume.
Plaintiffs seek to recover damages on behalf of all Class members who invested in InvenSense common stock during the Class Period. If you invested in InvenSense common stock as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than March 9, 2015.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an InvenSense shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or email@example.com.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Northern District of California.