NEW YORK, Nov. 13, 2012 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a securities class action lawsuit has been commenced in the Superior Court of California on behalf of a class (the "Class") of investors who purchased or otherwise acquired shares of Envivio, Inc. ("Envivio" or the "Company") (NASDAQ: ENVI) common stock pursuant to or traceable to the Company's April 12, 2012 Registration Statement and Prospectus (the "Prospectus") filed in connection with the Company's initial public offering ("IPO"). Plaintiffs allege that Defendants, including the underwriters on the IPO, violated the Securities Act of 1933.
Plaintiffs allege that Defendants failed to disclose the following in the Prospectus: Envivio's largest customers did not view Envivio's services as a spending priority and, thus, were not increasing their demand for Envivio products due to budgetary constraints; Envivio was experiencing a severe lengthening of its sales cycle for closing new business; Envivio was having difficulty maintaining a competitive advantage and was losing business to rival Harmonic Inc.'s video processing technologies; and Envivio's past revenue results were not indicative of future operations because the Company was not growing as fast as represented, particularly in North America and Western Europe.
The truth about Envivio first began to be disclosed on August 13, 2012. On that date, Envivio stock fell 56% after Defendants disclosed that the Company's preliminary second quarter revenues were substantially below prior projections. On September 6, 2012, Envivio definitively announced poor second quarter results and disappointing guidance. Envivio stock fell another 20%, falling to just $2.15 per share on September 7, 2012 – a 76% decline from the Company's $9 IPO price.
If you are interested in discussing your rights as an Envivio shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the Superior Court of California, San Mateo County.
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Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
SOURCE Bernstein Liebhard LLP