A class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of purchasers of Immersion Corporation (NASDAQ: IMMR) publicly traded securities during the period between May 3, 2007 and June 30, 2009 (the “Class Period”). The complaint charges Immersion and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Immersion is a provider of haptic technologies, which allow people to use their sense of touch while operating a variety of digital devices.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s transactions in its Medical line of business. Specifically, defendants failed to disclose that Immersion’s revenue recognition practices in its Medical line of business were improper. As a result of defendants’ false and misleading statements, Immersion stock traded at artificially inflated prices during the Class Period, reaching a high of $20.50 per share on July 13, 2007. Subsequently, in February 2008, Immersion announced a correction of its income tax expense for its interim 2007 results, causing the Company’s stock to drop somewhat, but the stock continued to trade at artificially inflated levels due to the Company’s reported profitability. Then, on July 1, 2009, before the market opened, the Company issued a press release announcing that the Audit Committee of the Company’s Board was conducting an internal investigation into certain previous revenue transactions in its Medical line of business. On this news, Immersion’s stock dropped over 23% from a close of $4.94 per share on June 30, 2009 to a close of $3.80 per share on July 1, 2009.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company’s revenue recognition practices with respect to its Medical line of business did not comply with Generally Accepted Accounting Principles; and (b) the Company’s reported revenue and earnings were overstated due to the Company’s false accounting.
If you purchased shares during the class period of May 3, 2007 and June 30, 2009 please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.