San Diego, CA -- (ReleaseWire) -- 06/03/2014 -- An investor, who purchased shares of Covisint Corp (NASDAQ:COVS), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Covisint Corp in connection with certain allegedly false and misleading statements made in connection with Covisint Corp’s September 26, 2013 initial public stock offering.
Investors who purchased shares of Covisint Corp (NASDAQ:COVS) pursuant and/or traceable to Covisint Corp’s September 26, 2013 initial public stock offering have certain options and for certain investors are short and strict deadlines running. Deadline: July 29 2014. NASDAQ:COVS investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Covisint Corp (NASDAQ:COVS) common shares pursuant and/or traceable to Covisint Corp’s September 26, 2013 initial public stock offering (“IPO”), that Covisint Corp, certain of its officers and directors and the underwriters of the IPO violated that Securities Act of 1933.
The plaintiff claims that the Registration Statement, and the documents referenced and incorporated therein, allegedly negligently failed to disclose that Covisint Corp was experiencing a greater than expected decline in its subscription revenue due to poor sales execution and late-stage pipeline conversion issues, that Covisint Corp was facing increased competition in its services segment as customers were not adding services at a rate consistent with expectations, that Covisint Corp was experiencing a decline in General Motors-related service revenue, that Covisint Corp 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 that as a result of the foregoing, there was no reasonable basis to “expect” revenues for 2014 to increase by 20% from 2013.
The plaintiffs says that these known, but undisclosed, facts had a material adverse effect on Covisint Corp’s operating results during its fourth quarter and fiscal 2014 full-year.
Covisint Corp reported that its Total Revenue rose from $40.45 million for the 12 months period that ended on March 31, 2010 to $90.73 million for the 12 months period that ended on March 31, 2013.
On September 26, 2013 Covisint stock opened for trading at $12.60 the day the Company sold 6.4 million shares of stock in its initial public stock offering (the "IPO").
Shares of Covisint Corp (NASDAQ:COVS) reached $14.46 per share in late October 2013.
Then on January 23, 2014, Covisint Corp announced its third quarter fiscal 2014 earnings results. Shares of Covisint Corp declined from $12.84 per share on January 23, 2014 to $8.74 per share on January 27, 2014.
Then on March 13, 2014, Covisint Corp announced its preliminary Q4 fiscal year 2014 result and named Sam Inman interim CEO. Shares of Covisint Corp declined from $11.41 per share on March 7, 2014, to as low as $5.04 per share on May 30, 2014.
Those who purchased shares of Covisint Corp (NASDAQ:COVS) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego