Newman Ferrara LLP Announces That a Securities Fraud Class Action Lawsuit
Has Been Filed against Envivio, Inc.
NEW YORK -- January 15, 2013
Newman Ferrara LLP announces that a class action lawsuit has been filed on
behalf of purchasers of Envivio, Inc. (“Envivio”) (NasdaqGS: ENVI) common
stock against Envivio and certain of its executive officers, alleging
violations of federal securities laws.
Investors who purchased Envivio securities in and/or following Envivio’s April
24, 2012 Initial Public Offering (the “IPO”) may apply with the Court to be
appointed Lead Plaintiff no later than February 18, 2013. The Lead Plaintiff
will direct the litigation on behalf of the other class members. The Court
will select the Lead Plaintiff from among applicants claiming the largest
The Complaint alleges that Envivio issued a false and misleading Registration
Statement and Prospectus in connection with its IPO. Specifically, the
Complaint alleges that Envivio and certain of its executive officers failed to
disclose that a significant number of Envivio’s customers were delaying
capital spending in the multi-screen video industry due to budgetary
constraints and that Envivio was experiencing a severe lengthening in its
sales cycle for new business because it was taking significantly more time for
Envivio to complete certain business transactions.
On August 13, 2012, Envivio announced that it expected revenue for the quarter
ending July 31, 2012 to be in the range of $10-$11 million, down considerably
from its previously issued guidance of a range of $17-$18 million. On this
news, shares of Envivio stock dropped in value more than 56% and have dropped
approximately 79% since the IPO.
Investors who purchased shares of Envivio stock in or traceable to the IPO are
encouraged to contactNewman Ferrara attorney Roy Shimon at email@example.com
or call (212) 619-5400 to discuss this lawsuit or the Lead Plaintiff process.
Newman Ferrara maintains a multifaceted practice based in New York City with
attorneys specializing in complex commercial and multi-party litigation,
securities fraud and shareholder litigation, consumer protection, civil
rights, and real estate. For more information, please visit the firm website
Newman Ferrara LLP
Roy Shimon, 212-619-5400
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