ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS ACTION SUIT AGAINST IMPINJ, INC.
San Diego – August 27, 2018 – Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/impinj/) today announced that a class action has been commenced on behalf of purchasers of Impinj, Inc. (NASDAQ:PI) publicly traded securities during the period between May 4, 2017 and August 2, 2018 (the “Class Period”). This action was filed in the Western District of Washington and is captioned Montemarano v. Impinj, Inc., et al., No. 18-cv-1264.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Impinj publicly traded securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from August 7, 2018. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/impinj/.
The complaint charges Impinj and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Impinj sells integrated circuit (“IC”) tags (“tag ICs”), which, when connected to an item, are called endpoints. These endpoints function as a tag system that provides wireless information about tagged items. Impinj also sells reader ICs that enable wireless communication with the tag ICs.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Impinj’s business, operations and prospects. Specifically, the complaint alleges defendants failed to disclose that the addition of large customers in 2016 had driven a contraction in Impinj’s ability to fulfill its production obligations, which resulted in lead times between 10 and 12 weeks instead of the normal baseline time range of 4 to 6 weeks; that increased sales of IC endpoints were not indicative of strong demand being driven by increased product adoption, but rather, they were the result of customers purchasing increased inventory to account for extended production lead times; and that Impinj lacked adequate accounting and reporting controls. As a result of this information being withheld from the market, Impinj securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $59 per share.
On February 1, 2018, Impinj announced it was reducing its revenue guidance and that its long-time CFO had resigned. On this news, the price of Impinj common stock declined more than $10 per share, or nearly 47%, to close at $12.16 per share on February 2, 2018. Then on August 2, 2018, Impinj announced that it was delaying the release of its second quarter 2018 results. The Company also disclosed that in response to having received a complaint from a former employee, the Audit Committee of its Board of Directors had commenced an independent investigation and had retained independent counsel to assist in the investigation. Impinj stated that it could not “predict the duration or outcome of the investigation, and [would] not be in a position to file [its] Form 10-Q until the Audit Committee complete[d] its investigation.” Impinj also announced preliminary second quarter 2018 financial results that day, disclosing that it had reduced its inventory balance by $1.4 million. On this news, Impinj’s share price fell $3.02 per share, or nearly 14%, on August 3, 2018.
Plaintiff seeks to recover damages on behalf of all purchasers of Impinj publicly traded securities during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.