SAN DIEGO, June 9, 2014 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed on behalf of certain purchasers of Covisint Corp (COVS) common stock 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 ("IPO").
If you purchased shares of Covisint Corp (COVS), you have certain options and for certain investors are short and strict deadlines running. Covisint Corp investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
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.
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 $3.87 per share on June 4, 2014.
The plaintiff seeks to recover damages on behalf of all purchasers of Covisint common stock pursuant and/or traceable to the Company's September 26, 2013 IPO.
Those who purchased shares of Covisint Corp (COVS) have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.