InvenSense, Inc INVN Securities Lawsuit

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Company: InvenSense, Inc
Ticker Symbol: INVN
Class Period: Jul-14-14 to Oct-28-14
Date Filed: Jan-26-15
Lead Plaintiff Deadline: Mar-27-15
Court: Northern District of California
Los Angeles, CA: A securities class action lawsuit has been filed against InvenSense, Inc. ("InvenSense" or the "Company") 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").

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.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

InvenSense, Inc INVN Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible InvenSense, Inc securities class action lawsuit. Please click the link below to submit your complaint for a free evaluation.

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