Robbins Arroyo LLP: Impinj, Inc. (PI) Misled Shareholders According to a Class Action
SAN DIEGO & SEATTLE--(BUSINESS WIRE)--Oct 8, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Impinj, Inc. (NasdaqGS: PI) have filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between November 3, 2016 and February 15, 2018. Impinj operates a platform that enables wireless connectivity to everyday items by delivering each item’s unique identity, location, and authenticity to business and consumer applications.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/impinj-inc-oct-2018/
Impinj Accused of Misleading Investors Regarding Product Demand
According to the complaint, Impinj told investors that the company was increasing inventory levels to meet rising market demands. In reality, the increased sales Impinj boasted about were the result of customers temporarily purchasing more inventory to account for longer production lead times.
On August 3, 2017, the company reduced its full-year forecasts, projecting approximately half the growth of its endpoint ICs from what it provided the prior quarter, blaming customers’ delayed expansion as opposed to decline in demand. Then, on November 1, 2017, the company lowered fourth quarter guidance due to “a decline in endpoint IC demand” attributable to customers “adjusting from a transition where we had constrained supply and long lead times to us having a buffer stock in short lead times now.” This news caused the price of Impinj stock to decline approximately 34%.
On February 1, 2018, Impinj pre-announced its fourth quarter 2017 earnings, disclosing a revenue miss, causing its stock to drop nearly 47%. After the company’s February 15, 2018, earnings call noted a reduction in order backlog and a further reduction in inventory by Impinj’s partners, the stock fell another 18%.
Impinj Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com:https://www.businesswire.com/news/home/20181008005747/en/
CONTACT: Robbins Arroyo LLP
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SOURCE: Robbins Arroyo LLP
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PUB: 10/08/2018 03:40 PM/DISC: 10/08/2018 03:40 PM