Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against Envivio, Inc.

  Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against Envivio,
  Inc.

Business Wire

LOS ANGELES -- January 8, 2013

Glancy Binkow & Goldberg LLP today announced that class actions are pending in
the United States District Court for the Northern District of California on
behalf of purchasers of Envivio, Inc. (“Envivio”) (NASDAQ:ENVI) common stock
pursuant or traceable to the Company’s allegedly false and misleading
Registration Statement and Prospectus issued in connection with its April 24,
2012 initial public offering (“IPO”), seeking to pursue remedies under the
Securities Act of 1933 (“1933 Act”).

If you wish to discuss this action or have any questions concerning this
notice or your rights or interests, please contact Michael Goldberg, Esquire,
of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los
Angeles, California 90067, by telephone at 310-201-9150 or Toll Free at
888-773-9224, by e-mail to shareholders@glancylaw.com, or visit our website at
http://www.glancylaw.com.

Envivio provides software-based IP video processing and distribution solutions
to mobile and broadband service providers. Envivio filed its Prospectus for
the IPO on April 25, 2012, selling approximately 7.755 million shares to the
public at $9 per share, raising almost $70 million in gross proceeds. The
complaint charges defendants with issuing a materially false and misleading
Registration Statement and Prospectus in connection with Envivio’s IPO in
violation of the 1933 Act.

On August 13, 2012, the Company issued a press release announcing that it
expected revenues in the range of $10-$11 million instead of 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% on high volume – a decline
of more than 72% off the IPO price.

Then, after the market closed on September 6, 2012, Envivio announced
disappointing guidance for its fiscal 2012 third quarter. Thereafter, during a
conference call with investors, Envivio’s executives acknowledged that the
Company was experiencing a significant number of project delays with its
existing customers, particularly in North America and Western Europe, which
had been key growth areas for the Company. Defendants further admitted that
the Company had also been experiencing a severe lengthening in its sales cycle
for obtaining new business. On this news, Envivio’s stock price dropped
another 20% on high volume.

The complaint alleges that the true facts, which were omitted from the
Registration Statement and Prospectus for the IPO were that: (a) Envivio’s
largest customers did not view Envivio’s services as a spending priority and
as a result they were not increasing their demand for Envivio’s services to
the extent represented due to budgetary constraints; (b) Envivio was
experiencing a severe lengthening in its sales cycle for closing new business;
(c) Envivio was having trouble maintaining a competitive advantage and was
losing deals to rival Harmonic Inc.’s video processing technologies; and (d)
Envivio’s past revenue results were not indicative of its future operations as
the Company’s business was not growing as fast as represented, particularly in
North America and Western Europe.

Plaintiff seeks to recover damages on behalf of all purchasers of Envivio
common stock in or traceable to the IPO (the “Class”). The plaintiff is
represented by Glancy Binkow & Goldberg LLP, which has expertise in
prosecuting investor class actions and extensive experience in actions
involving financial fraud.

This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.

Contact:

Glancy Binkow & Goldberg LLP, Los Angeles, CA
Michael Goldberg
310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com
 
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