A class-action lawsuit filed on Wednesday against a technology company that manufactured sensors used in the iPhone 6 alleged the company under sold its product and hurt its stock.
Jim McMillan filed the lawsuit against InvenSense, Inc.. He is seeking class action for those who held stock in the company between July 29, 2014 and Oct. 28, 2014.
Apple used InvenSense's sensors in its iPhone 6 product, but the company allegedly was unable to tell investors that it was working with Apple until Sept. 4, 2014 because of the way Apple does business.
On July 29, 2014, the company released financial results for the end of the quarter, and made positive statements about the current and future prospects of the business.
The lawsuit alleged that although neither Apple nor the iPhone 6 were mentioned by name, the statement stilll made it clear that the InvenSense sensors would be included in the iPhone 6.
InvenSense allegedly offered a low price point for its products to both Apple and Samsung, which lowered the company's profitability. Additionally, InvenSense allegedly had manufacturing issues related to the development and release of the iPhone 6, and the company also had a large supply of old inventory that needed to be written off.
The suit alleged that InvenSense did not mention these issues to investors.
InvenSense issued a press release on Oct. 28, 2014 that said the quarter ending on Sept. 28 included net revenue of $90.2 million and a net loss of approximately $6.87 million.
McMillan is represented by Shawn Williams, Samuel H. Rudman and Evan J. Kaufman, of Robbins, Geller, Rudman & Dowd, LLP.
United States District Court Northern District of California case number 3:15-cv-00084.