NEW YORK, Jan. 26, 2015 (GLOBE NEWSWIRE) -- 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 .
Robert S. Willoughby Pomerantz LLP
