NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/covisint/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Covisint Corporation (“Covisint” or the “Company”) (Nasdaq:COVS) common stock pursuant and/or traceable to Covisint’s September 26, 2013 initial public stock offering (the “IPO”), seeking to pursue remedies under the Securities Act of 1933 (the “Securities Act”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/covisint/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Covisint, certain of its officers and directors and the underwriters of the IPO with violations of the Securities Act. Covisint provides a cloud engagement platform for enabling organizations to securely connect, engage and collaborate with large, distributed communities of customers, business partners and suppliers. In the IPO, the Company sold 6.4 million shares of Covisint common stock to the public at $10 per share, raising approximately $64 million in gross proceeds for the Company.
The complaint alleges that the Registration Statement, and the documents referenced and incorporated therein, negligently failed to disclose the following material facts which existed at the time of the IPO: (i) that the Company was experiencing a greater than expected decline in its subscription revenue due to poor sales execution and late-stage pipeline conversion issues; (ii) that the Company was facing increased competition in its services segment as customers were not adding services at a rate consistent with expectations; (iii) that the Company was experiencing a decline in General Motors-related service revenue; (iv) that the Company was losing healthcare customers at an increasing rate and its pipeline of healthcare-related deals was steadily declining and included numerous deals that were not likely to be consummated; and (v) as a result of the foregoing, there was no reasonable basis to “expect” revenues for 2014 to increase by 20% from 2013. These known, but undisclosed, facts had a material adverse effect on Covisint’s operating results during its fourth quarter and fiscal 2014 full-year. At the time of the filing of the lawsuit, Covisint stock was trading at approximately $5.37 per share, a 46% decline from the IPO price.
Plaintiff seeks to recover damages on behalf of all purchasers of Covisint common stock pursuant and/or traceable to the Company’s September 26, 2013 IPO (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, with more than 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest jury verdict ever in a securities class action. Please visit http://www.rgrdlaw.com for more information.