Feb. 16, 2023, 5 :53 PM
A institutional investor asserts that Kornit Digital Ltd., an apparel and textile printing company, inflated its share price by not disclosing that two major customers opted to work with a rival printer because of quality and customer service issues.
“Kornit repeatedly touted the purported competitive advantages provided by its technology and assured investors that it faced virtually no meaningful competition in the ‘direct-to-garment’ printing market,” the Genessee County, Mich., retirement fund says.
It filed its complaint Wednesday at the US District Court for the District of New Jersey.
Kornit was aware or ought to have known that it was losing market share due to competition.