A class action lawsuit was filed against Innoviz Technologies, Ltd. (NASDAQ:INVZ) on March 15, 2024. The plaintiffs (shareholders) alleged that they bought INVZ stock at artificially inflated prices between April 21, 2021 and February 28, 2023 (Class Period) and are now seeking compensation for their financial losses. Investors who bought INVZ stock during that period can learn about joining the lawsuit here: https://zlk.com/pslra-1/innoviz-technologies-ltd-lawsuit-submission-form?wire=16
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Innoviz manufactures high-performance, solid-state LiDAR sensors, and perception software that bring vision to the automotive, drone, robotics, mapping, and other industries.
The plaintiffs maintain that the company and two of its senior officers deceived investors by repeatedly lying and withholding vital information about its contracts, partnerships, and/or collaborations with several noteworthy automotive original equipment manufacturers (OEMs).
The truth became clear on March 1, 2023, before the markets opened, when Innoviz released its Fiscal 2022 results. In FY22, Innoviz’s revenue of $6.03 million missed estimates by $0.96 million. At the same time, the loss per share of $0.94 came in higher than the consensus loss estimate by $0.06. Meanwhile, Innoviz guided for FY23 revenue in the range of $12 million to $15 million, which also came in significantly below the consensus estimate of $30 million.
Interestingly, during the Class Period, Innoviz repeatedly mentioned its strong ties with OEMs and branded automobile manufacturers. As per the company, these customers were very happy with Innoviz’s products and were looking for long-term business partnerships.
As per the class action lawsuit, Innoviz caused INVZ stock to trade at artificially inflated prices by knowingly and recklessly misleading investors about its business prospects.
Notably, on March 1, 2023, INVZ stock plunged by 14.9%. It has lost 64.8% in the past year, causing massive damage to shareholders’ returns.
