February 16, 2023, 5 :53 PM
An institutional investor claims that Kornit Digital Ltd., a textile and apparel printing company, inflated its share prices by failing to disclose quality and customer service issues that drove two major customers to work with a competitor printer.
“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 before 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…