February 16, 2023 at 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, however, knew or should have known that it was losing market shares to its competitors due to…