Schultz v. Impinj, Inc., et al 2:18-cv-06765 — On August 7, 2018, investors sued Impinj, Inc. (Impinj, PI, or the Company) in United States District Court, Central District of California. The Impinj class action alleges that plaintiffs acquired Impinj stock at artificially inflated prices between May 7, 2018 and August 2, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information on the Impinj Lawsuit, please contact us today.
Summary of the Allegations
The Company (NASDAQ:PI) bills itself as “a leading provider of RAIN RFID solutions.”
As such, it says it helps businesses around the world “increase sales, improve efficiencies, and deliver compelling experiences.” Specifically, it says its platform “delivers an item’s identity, location, and authenticity—what we call Item Intelligence—to business and consumer applications.” In all, Impinj claims it has “connected” more than 25 billion items through this technology.
Based in Seattle, the IMPINJ says that it has partners in 60 countries. Its customers include Coca-Cola, Cisco and Johnson Controls.
Summary of Facts
Impinj and two of its senior officers (the Individual Defendants) are accused of deceiving investors by lying and withholding critical information about the Company’s business practices during the Class Period.
Specifically, they are accused of omitting truthful information about certain conduct resulting in a complaint and investigation; and the efficacy of its internal and financial controls from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Impinj stock to trade at artificially inflated prices during the time in question.
The truth came out on August 2, 2018. That’s when the Company announced that it was “delaying the release of its second quarter 2018 results” due to an independent, ongoing investigation conducted by its Audit Committee based on a complaint made by a former employee.
A closer look…
As alleged in the August 7 complaint, the Company and/or Individual Defendants repeatedly made false or misleading public statements during the Class Period.
For example, in a press release issued May 7, 2018, one of the Individual Defendants said in pertinent part: “Based on team execution, enhanced partner inventory visibility and positive booking trends, we believe we are on track to make the first half of 2018 the turning point for our business.”
The next day, the Company filed a form with the SEC that had been signed by one of the Individual Defendants and “reaffirmed the financial results” Impinj announced in the press release.
The same form included signed certifications pursuant to federal law in which the Individual Defendants affirmed the truthfulness and accuracy of the information included therein. By signing the certifications, they also attested to the efficacy and status of the Company’s internal controls over financial reporting.
Impact of the Alleged Fraud on Impinj’s Stock Price and Market Capitalization
|Closing stock price prior to disclosures:
|Closing stock price the trading day after disclosures:
|One day stock price decrease (percentage) as a result of disclosures:
The following chart illustrates the stock price during the class period:
Actions You May Take
If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.
NOTE: The deadline to file for lead plaintiff in this class action is October 9, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.
In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Impinj common stock using court approved loss calculation methods.
Recently Filed Cases
Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action. Please contact us if you would like an LK report for any of these cases:
Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse. With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.
Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients. Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.