SAN DIEGO and DETROIT, June 2, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Covisint Corporation (NASDAQGS: COVS) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 in connection with the company's September 26, 2013 initial public offering (the "IPO"). Covisint, originally founded by an assortment of global automotive manufactures to develop an online auto parts exchange, today provides a cloud engagement platform designed to connect, engage, and collaborate with distributed communities of customers, business partners, and suppliers for the auto, healthcare, energy, travel, financial services, life sciences, and consumer goods industries.
Covisint Is Accused of Failing to Disclose Material Facts in Its Registration Statement
According to the complaint, as of May 30, 2014, shares of Covisint had declined 46%, since the company's September 26, 2013 IPO. Specifically, the complaint alleges that when the Registration Statement in connection with the IPO was filed, Covisint knew and failed to disclose that it was: (i) experiencing a greater than expected decline in its subscription revenue due to poor sales execution at late-stage pipeline conversion issues; (ii) facing increased competition in its services segment as customers were not adding services at a rate consistent with expectations; (iii) experiencing a decline in service revenue from one of its automotive company customers and; (iv) losing healthcare customers at an increasing rate and its pipeline of healthcare related deals was declining.
Covisint Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in Covisint and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: http://www.robbinsarroyo.com/shareholders-rights-blog/covisint-corporation/
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP