BALA CYNWYD, Pa., Jan. 9, 2013 /PRNewswire/ -- Law office of Brodsky & Smith, LLC announces that it is investigating Envivio, Inc. ("Envivio" or the "Company") (Nasdaq- ENVI) for an allegedly false and misleading Registration Statement issued in connection with its April 24, 2012 initial public offering ("IPO").
On August 13, 2012, the Company issued a press release announcing that it expected revenues in the range of $10-$11 million as opposed to its previously issued guidance of $17-$18 million for the quarter ending July 31, 2012. On this news, Envivio's stock declined more than 56%, which represents a decline of more than 72% since the IPO.
A class action lawsuit commenced in the United States District Court for the Northern District of California alleges that the Registration Statement and Prospectus for the IPO failed to advise that Envivio's largest customers were not increasing their demand for Envivio's services, Envivio was losing deals to Harmonic Inc's video processing technologies, the Company was experiencing a severe lengthening in its sales cycle, and its business was not growing as fast as represented.
If you purchased shares of Envivio stock in or traceable to the IPO and wish to discuss the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at firstname.lastname@example.org, visiting http://brodsky-smith.com/527-envi-envivios-inc.html, or by calling toll free 877-LEGAL-90. If you choose to retain counsel, you may retain Brodsky & Smith, LLC without financial obligation to you, or you may retain other counsel of your choice.
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SOURCE Brodsky & Smith, LLC