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 made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Northern District of California by another law firm on behalf of purchasers of the common stock of Envivio, Inc. (NASDAQ: ENVI) between April 25, 2012 and September 6, 2012, inclusive (the “Class Period”). Envivio sold 7.75 million shares priced at $9.00 in its IPO completed on April 25, 2012.
The complaint alleges that Envivio and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose:
(1) Envivio's true historical revenue growth; (2) the true revenue from the Company's Americas segment; (3) that Envivio’s past revenue results were not indicative of its future operations as the Company’s business was not growing as fast as represented; (4) that at the time of the IPO the Company’s existing customers had dramatically reduced spending on Envivio’s products and there was no growing new demand for the Company’s products.
On September 6, 2012, the Company issued its second quarter results for the fiscal year 2013. The Company reported a drop in revenue, which was down from both previous results and from the Company’s guidance, in addition to a larger net loss than the Company had experienced in the second quarter of 2012. The Company remarked that: “Our results for the second quarter reflect project delays by our service provider customers and the impact of the macroeconomic environment. We are disappointed in our quarterly performance and have taken actions to reduce our cost structure.”
During an investor conference call the same day, the Company also blamed the shortfall on project delays, saying they resulted from longer budget cycles and smaller orders arising from budgetary restrictions, which Envivio ultimately blamed on a weak global economy.
On this news, the Company’s stock price declined $0.46 per share, or 17.16% to close at $2.22 per share on September 7, 2012. This closing price of the Company’s common stock represented a cumulative loss of $6.78, or more than 75%, of the value of the Company’s shares at the time of the Company’s IPO.
Cohen Milstein encourages all investors who purchased Envivio common stock between April 25, 2012 and September 6, 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 email@example.com. If you wish to serve as lead plaintiff, you must move the Court no later than April 29, 2014 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 one 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: firstname.lastname@example.org; email@example.com