NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States Superior Court of the State of California, County of San Mateo on behalf of investors who purchased Envivio, Inc. (NasdaqGS: ENVI) securities pursuant or traceable to the Company’s April 24, 2012 Initial Public Offering.
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The complaint alleges that the Company issued a false and/or misleading registration statement and prospectus in connection with the offering. In particular, the complaint alleges that Envivio failed to disclose that: (a) its largest customers did not view the Company’s services as a priority and thus were not increasing their demand for said services to the extent represented; (b) the Company was experiencing a substantial lengthening in its sales cycle for closing new business; (c) the Company was struggling to maintain a competitive advantage due to the technologies of its rival, Harmonic Inc; and (d) because the Company’s business was not growing as quickly as represented, the Company’s past revenue results were not indicative of its future financial operations.
On August 13, 2012, Envivio announced preliminary revenue results for its fiscal 2012 second quarter that were substantial below its previous guidance. Upon this news, Envivio stock fell more than 56% the following day. Then, on September 6, 2012, the Company announced disappointing guidance for its fiscal 2012 third quarter and acknowledged that it had experienced a significant number of project delays and a severe lengthening in its sales cycle. Upon this news, shares of Envivio stock fell 20% to close $2.15 per share the following day.
Levi & Korsinsky is a national firm with offices in New York and Washington D.C. The firm has extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities and shareholder lawsuits. Attorney advertising. Prior results do not guarantee similar outcomes.