WASHINGTON--(BUSINESS WIRE)--Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Envivio, Inc. (“Envivio” or the “Company”) and certain of its officers and directors violated Sections 11 and 15 of the Securities Act of 1933.
The first of several class action lawsuits was filed in the U.S. District Court for the Northern District of California by another law firm on behalf of all persons or entities that purchased or otherwise acquired the common stock of Envivio, Inc. (NASDAQ: ENVI) pursuant or traceable to the Company's initial public offering on or after April 24, 2012 ("IPO"). Envivio sold 7.75 million shares in the IPO priced at $9.00 per share.
The complaints allege that the Registration Statement failed to disclose that: (1) due to budgetary constraints Envivio’s largest customers were not increasing their demand for Envivio’s services to the extent represented; (2) Envivio was experiencing an extensive lengthening in its sales cycle for closing new business; (3) Envivio was having trouble maintaining a competitive advantage and was losing deals to rival video processing technologies; and (4) Envivio’s past revenue results were not indicative of its future operations as the Company’s business was not growing as fast as represented, particularly in North America and Western Europe.
Following the IPO, the Company reported continuous and steep declines in its revenues and there was a recurring disparity between the guidance provided by the Company and its actual sales. On December 4, 2012, Envivio released its actual third quarter results, including revenue of just $7.2 million, which was 49% below reported revenue for the third quarter of the prior year. The Company also reported a net loss of $5.6 million, or ($0.21) per share, compared to net income of $484,000, or breakeven a year earlier, announced a “restructuring of its sales force,” and the departure of Chief Operating Officer, Kevin O'Keefe.
Cohen Milstein encourages all investors who purchased Envivio common stock pursuant or traceable to the Company's initial public offering on or after April 24, 2012 or former employees with information concerning this matter to contact the firm.
If you are an Envivio shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than February 18, 2013 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach Gardens, and is active in major litigation pending in federal and state courts throughout the nation.
The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: email@example.com; firstname.lastname@example.org