SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMCNet:  Equity Alert: Johnson & Weaver, LLP Filed Class Action Complaint Against Certain Officers and Directors of Covisint Corporation; Investors with Losses in Excess of $100,000 Encouraged to Contact the Firm

[July 03, 2014]

Equity Alert: Johnson & Weaver, LLP Filed Class Action Complaint Against Certain Officers and Directors of Covisint Corporation; Investors with Losses in Excess of $100,000 Encouraged to Contact the Firm

SAN DIEGO --(Business Wire)--

Shareholder rights law firm Johnson & Weaver, LLP, who filed the initial class action complaint alleging violations of the federal securities laws against Covisint Corporation (NASDAQ: COVS) and certain of its officers and directors, reminds investors that they have until July 29, 2014 to file a motion seeking to be appointed lead plaintiff. If you purchased Covisint common stock in connection with the Company's September 26, 2013 initial public stock offering (the "IPO"), and have substantial losses, you are encouraged to contact the firm regarding your legal rights. The case is pending in the United States District Court for the Southern District of New York.

Additional Information about the Lawsuit:

The complaint alleges Covisint, certain of its officers and directors, and the underwriters of the Company's September 26, 2013 IPO violated the Securities Act of 1933. Covisint provides a cloud engagement platform that enables organizations to securely connect, engage and collaborate with large, distributed communities of customers, business partners and suppliers. In the IPO, the Company sold 6.4 million shares of Covisint common stock to the public at $10 per share, raising approximately $64 million in gross proceeds for the Company.

Specifically, the complaint alleges that the Registrtion Statement, and the documents referenced and incorporated therein, negligently failed to disclose the following material facts which existed at the time of the IPO: (i) that the Company was experiencing a greater than expected decline in its subscription revenue due to poor sales execution and late-stage pipeline conversion issues; (ii) that the Company was facing increased competition in its services segment as customers were not adding services at a rate consistent with expectations; (iii) that the Company was experiencing a decline in General Motors (News - Alert)-related service revenue; (iv) that 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 (v) as a result of the foregoing, there was no reasonable basis to "expect" revenues for 2014 to increase by 20% from 2013. These known, but undisclosed, facts had a material adverse effect on Covisint's operating results during its fourth quarter and fiscal 2014 full-year. At the time of the filing of the lawsuit, Covisint stock was trading at approximately $5.37 per share, a 46% decline from the IPO price.


Plaintiff seeks to recover damages on behalf of all purchasers of Covisint's publicly traded securities during the Class Period. If you wish to serve as a lead plaintiff, you must move the Court no later than July 29, 2014. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker (jimb@johnsonandweaver.com) at 619-814-4471. If you email, please include your phone number.

Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.


[ Back To Technology News's Homepage ]

OTHER NEWS PROVIDERS







Technology Marketing Corporation

800 Connecticut Ave, 1st Floor East, Norwalk, CT 06854 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2014 Technology Marketing Corporation. All rights reserved | Privacy Policy