Lawsuit accuses Impinj of defrauding investors, alleging company overhyped demand for connected RFID tags

Impinj had a stellar start to life as a public company, posting several strong quarters in a row, but a new lawsuit alleges that the RFID technology company overplayed its earlier success and claims that the company deceived investors in the process. The suit, filed in U.S. District Court in Seattle, alleges that Impinj overestimated demand for its tags for connecting items to the internet in 2016 and 2017, when customers were actually buying more tags than they needed because Impinj was dealing with production delays. Once the supply issues cleared up, the suit argues, demand slowed significantly because customers were no longer stockpiling inventory. The suit claims the situation caused subpar revenue growth and sent Impinj stock spiraling downward.