Impinj, Inc. (PI) Accused of Misleading Investors Regarding Product Demand
According to the complaint, Impinj, Inc. (PI) 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, Inc. (PI) Shareholders Have Legal Options
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