Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Impinj, Inc. (NasdaqGS: PI) have filed a shareholder derivative complaint against the company’s officers and directors for breaches of their fiduciary duties from November 3, 2016 to the present. 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-nov-2018/
Impinj Accused of Misleading Investors Regarding Product Demand
According to the complaint, Impinj experienced a significant increase in customers in 2016, which caused production delays that resulted in increased lead times. The company told investors that it was increasing inventory levels to meet rising market demands, but the truth was that 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, blaming customers’ delayed expansion as opposed to decline in demand. 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.”
Then, on August 2, 2018, Impinj announced the company would delay its earnings release, earnings call, and the filing of its quarterly report on Form 10-Q with the SEC for its second quarter ended June 30, 2018. The press release also announced that a former employee had filed a complaint with the company and that the audit committee had commenced an independent investigation. Impinj stock now trades significantly lower than prior to the alleged wrongdoing.
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, [email protected], 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.
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