NEW YORK--(BUSINESS WIRE)--Newman Ferrara LLP announces that a class action lawsuit has been filed on behalf of purchasers of Envivio, Inc. (“Envivio”) (NasdaqGS: ENVI) common stock against Envivio and certain of its executive officers, alleging violations of federal securities laws.
Investors who purchased Envivio securities in and/or following Envivio’s April 24, 2012 Initial Public Offering (the “IPO”) may apply with the Court to be appointed Lead Plaintiff no later than February 18, 2013. The Lead Plaintiff will direct the litigation on behalf of the other class members. The Court will select the Lead Plaintiff from among applicants claiming the largest investment losses.
The Complaint alleges that Envivio issued a false and misleading Registration Statement and Prospectus in connection with its IPO. Specifically, the Complaint alleges that Envivio and certain of its executive officers failed to disclose that a significant number of Envivio’s customers were delaying capital spending in the multi-screen video industry due to budgetary constraints and that Envivio was experiencing a severe lengthening in its sales cycle for new business because it was taking significantly more time for Envivio to complete certain business transactions.
On August 13, 2012, Envivio announced that it expected revenue for the quarter ending July 31, 2012 to be in the range of $10-$11 million, down considerably from its previously issued guidance of a range of $17-$18 million. On this news, shares of Envivio stock dropped in value more than 56% and have dropped approximately 79% since the IPO.
Investors who purchased shares of Envivio stock in or traceable to the IPO are encouraged to contact Newman Ferrara attorney Roy Shimon at email@example.com or call (212) 619-5400 to discuss this lawsuit or the Lead Plaintiff process.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.