NEW YORK, Nov. 17, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Envivio, Inc. ("Envivio" or the "Company") (NasdaqGS: ENVI).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Envivio's largest customers did not view the Company's services as a priority and were uninterested in increasing their demand for Envivio services to the extent represented; (2) the Company was experiencing lengthening sales cycles for closing new business; (3) the Company was struggling to maintain a competitive advantage due to the technologies of its rival, Harmonic Inc.; and (4) considering that the Company's business was not growing as quickly as represented, the Company's past revenue results were not indicative of Envivio's future financial operations.
An accurate picture of Envivio's business began to be disclosed on August 13, 2012. On that day, 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 $2.15 per share on September 7, 2012 – a 76% decline from the Company's $9.00 IPO price.
Then, on November 13, 2012 Envivio issued a press release revealing that revenues for the third quarter ending October 31, 2012 would be in the range of $7.0 million – $7.5 million, well below the Company's previous guidance of $10 million – $11 million. This resulted in a further decline of Envivio share price of roughly 16.5 percent on November 14, 2012.
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If you purchased Envivio stock or options pursuant or traceable to the Company's April 24, 2012 Initial Public Offering and would like to discuss your legal rights, visit www.faruqilaw.com/ENVI. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Envivio's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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