Lawsuit Overview
December 16, 2015 - The plaintiff filed a notice of voluntary dismissal.
December 7, 2015 - An investor in shares of Identiv Inc (NASDAQ: INVE) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Identiv Inc in connection with certain allegedly false and misleading statements made between November 7, 2013 and November 23, 2015.
According to the complaint the plaintiff alleges on behalf of purchasers of Identiv Inc (NASDAQ: INVE) common shares between November 7, 2013 and November 23, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 7, 2013 and November 23, 2015, defendants made false and/or misleading statements regarding, among other things, the Company’s revenue recognition practices, key accounting metrics, and its internal controls.
Identiv Inc reported that its annual Total Revenue rose from $72.36 million in 2012 to $81.25 million in 2014 and that its Net Loss of $50.34 million in 2012 declined to $17.79 million in 2014. Shares of Identiv Inc (NASDAQ: INVE) grew from $8.69 per share in November 2014 to as high as $14.84 per share in January 2015.
On May 1, 2015, Identiv Inc announced that it filed a Form 12b-25 with the Securities and Exchange Commission with respect to its annual report on Form 10-K for the period ended December 31, 2014 (the Annual Report ). Identiv Inc said that it needs additional time to complete the information called for by Item III of Form 10-K, including the executive compensation information (the Part III Information ) which Identiv Inc was not able to complete by April 30, 2015 (the prescribed due date for the inclusion of the Part III Information in the Company's Annual Report filing) without unreasonable effort or expense due to the circumstances described below. Identiv Inc said it had been served with a complaint from a former employee alleging, among other things, certain expense reimbursement issues with respect to certain executive officers and certain other employees of the Company. Identiv Inc said that its Board of Directors has formed a special committee (the Committee ) to investigate the allegations contained in the Complaint and related matters with the assistance of independent counsel.
On November 30, 2015, Identiv Inc disclosed in a filing with the U.S. Securities and Exchange Commission (“SEC”) that its independent accounting firm, BDO USA, LLP ( BDO ), had resigned, was unwilling to be associated with the consolidated financial statements for any fiscal periods within 2015, and would not complete its reviews of the financial information for the periods ended March 31, 2015, June 30, 2015, or September 30, 2015. BDO's resignation was reportedly over two material weaknesses in the company's internal controls related to the company's entity level controls and revenue recognition.