Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Covisint Corporation
WAYNE, Pa., June 6, 2014 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed 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").
Covisint shareholders may, no later than July 29, 2014, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Covisint and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/covs. You may also email Mr. Maniskas at firstname.lastname@example.org.
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.
If you are a member of the class, you may, no later than July 29, 2014, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide. To learn more about the class action process, please visit: www.rmclasslaw.com.
SOURCE Ryan & Maniskas, LLP