NEW YORK, June 17, 2014 (GLOBE NEWSWIRE) -- The Rosen Law Firm announced today that a class action lawsuit has been filed on behalf of all purchasers of Covisint Corporation (Nasdaq:COVS) common stock issued pursuant to its September 26, 2013 initial public offering (the "IPO"), seeking to recover investors' losses.
To join the Covisint class action, visit the website at http://rosenlegal.com or call Phillip Kim, Esq. or Kevin Chan, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.com or kchan@rosenlegal.com for information on the class action.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
Covisint provides a cloud engagement platform in the United States and internationally. 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 proceeds.
According to the lawsuit, the Prospectus issued in connection with its IPO, negligently failed to disclose the following material facts in existence at the time: (i) Covisint was experiencing a greater than expected decline in its subscription revenue due to poor sales execution and late-stage pipeline conversion issues; (ii) Covisint was facing increased competition in its services segment as customers were not adding services at a rate in line with expectations; (iii) Covisint was experiencing a decline in General Motors-related service revenue; (iv) Covisint was losing healthcare customers at an increasing rate and its pipeline of healthcare-related deals was steadily declining with numerous deals unlikely 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. Shares of Covisint have declined $4.19 per share from its IPO price, or approximately 42%, to close at $5.81 on June 16, 2014.
A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than July 29, 2014. If you wish to join the litigation or to discuss your rights or interests regarding this class action, go to http://rosenlegal.com or contact, Phillip Kim, Esq. or Kevin Chan, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at pkim@rosenlegal.com or kchan@rosenlegal.com.
The Rosen Law Firm focuses on prosecuting securities class action litigation and actions involving financial fraud. The Rosen Law Firm represents investors throughout the globe. This notice may constitute attorney advertising.