|[June 20, 2014]
Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Covisint Corporation
WASHINGTON --(Business Wire)--
Cohen Milstein Sellers & Toll PLLC is conducting an investigation to
determine whether Covisint Corporation ("Covisint" or the "Company") and
certain of its officers, directors and underwriters violated the
Securities Act of 1933.
A class action lawsuit was filed in the U.S. District Court for the
Southern District of New York by another law firm on behalf of
purchasers of the common stock of Covisint Corporation (NASDAQ: COVS)
pursuant or traceable to the Registration Statement and Prospectus
issued in connection with Covisint's September 26, 2013 Initial public
stock offering ("IPO").
The complaint alleges that the offering documents misrepresented and/or
failed to disclose that: (1) Covisint was experiencing a greater than
expected decline in its subscription revenue due to poor sales execution
and late-stage pipeline conversion issues; (2) the Company was facing
increased competition in its services segment and customers were not
adding services at a rate consistent with expectations; (3) Covisint was
experiencing a decline in General Motors (News - Alert)-related service revenue; (4)
the Company was losing healthcare customers at an increasing rate, and
its pipeline of healthcare-related deals was steadily declining and
included numerous deals that were not likely to be consummated; and (5)
as a result of the foregoing, there was no reasonable basis to "expect"
revenues for fiscal year 2014 to increase by 20% compared to 2013.
Soon after Covisint's IPO, the Company sharply lowered its revenue
growth forecasts for its 2014 fiscal year. By March of 2014, defendants
acknowledged that they had been aware prior to the IPO that
certain of Covisint's ey customers either had or would be ending their
agreements with the Company. All three underwriters of Covisint's IPO
have either downgraded Covisint or significantly lowered their price
target on the shares.
Cohen Milstein encourages all investors who purchased Covisint common
stock pursuant or traceable to the Registration Statement and Prospectus
issued in connection with Covisint's September 26, 2013 IPO, or former
employees with information concerning this matter to contact the firm.
If you are a Covisint shareholder and would like to discuss your right
to recover for your economic loss, you may, without any cost or
obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at
(888) 240-0775 or (202) 408-4600, or email him at email@example.com.
If you wish to serve as lead plaintiff, you must move the Court no later
than July 29, 2014 to request that the Court appoint you as lead
plaintiff. A lead plaintiff is a representative party acting on behalf
of other class members in directing the litigation. To be appointed lead
plaintiff, the Court must decide that your claim is typical of the
claims of other class members, and that you will adequately represent
the class. Your share in any recovery will not be enhanced or diminished
by the decision whether or not to serve as a lead plaintiff. Any member
of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or
other attorneys to serve as your counsel in this action, or you may do
nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in
prosecuting investor class actions and actions involving securities
fraud. The firm has offices in Washington, D.C., New York, Chicago,
Philadelphia and Palm Beach Gardens, and is active in major litigation
pending in federal and state courts throughout the nation.
The firm has been repeatedly appointed by federal courts across the
country to lead positions in complex multi-district or consolidated
litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in
numerous important cases on behalf of defrauded investors, and has been
responsible for a number of outstanding recoveries which, in the
aggregate, total over one billion dollars. Prior results do not
guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with
regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll
1100 New York Avenue, N.W.
West Tower, Suite 500
Telephone: (888) 240-0775 or (202) 408-4600
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