Impinj Executives Under Investigation for Possible Breaches of Fiduciary Duty
Schubert Jonckheer & Kolbe is investigating potential derivative claims on behalf of the shareholders of Impinj, Inc. (NASDAQ: PI), related to the company’s statements concerning the capability and customer demand for the company’s product platform.
Impinj’s primary business is selling a platform comprised of integrated circuits with memory chips (“ICs”), connective devices, and software that can be used to tag and wirelessly connect everyday items to the digital world. The company represented that its platform enabled business to accurately locate, through the products’ wireless technology, any item that contained one of its patented endpoint IC tags.
A securities class action pending against company in the U.S. District Court for the Western District of Washington (Case No. 3:18-cv-05704-RSL), alleges that the platform lacked the location capability that the company promised. According to the securities complaint, Impinj’s Platform was plagued by a “locationing problem” that rendered it unable to perform its key function of accurately locating tagged items, which adversely impacted customer demand. When the company made a series of announcements between the middle of 2017 and early 2018 revealing disappointing results, Impinj’s stock price took a tumble, ultimately dropping in value from $47.92 per share in August 2017 to $11.07 per share in February 2018.
On October 3, 2019, U.S. District Judge Robert S. Lasnik, upheld the complaint, in part, finding that there was enough evidence to suggest that Impinj, Chief Executive Officer Chris Diorio, and Chief Financial Officer Evan Fein could be held accountable for violating federal securities laws. Judge Lasnik further found that plaintiffs had made a strong argument that Diorio intentionally or recklessly misled investors about Impinj’s platform capabilities.
The Schubert Firm is investigating potential derivative claims based on harm the company has suffered as a result of possible breaches of fiduciary duty by the company’s officers and directors.
If you currently own Impinj stock and wish to obtain additional information—or would like to participate in a potential shareholder derivative action—please complete the form below for a free legal consultation.
