Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against Envivio, Inc.

Tue Jan 8, 2013 8:09pm EST

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LOS ANGELES--(Business Wire)--
Glancy Binkow & Goldberg LLP today announced that class actions are pending in
the United States District Court for the Northern District of California on
behalf of purchasers of Envivio, Inc. ("Envivio") (NASDAQ:ENVI) common stock
pursuant or traceable to the Company`s allegedly false and misleading
Registration Statement and Prospectus issued in connection with its April 24,
2012 initial public offering ("IPO"), seeking to pursue remedies under the
Securities Act of 1933 ("1933 Act"). 

If you wish to discuss this action or have any questions concerning this notice
or your rights or interests, please contact Michael Goldberg, Esquire, of Glancy
Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles,
California 90067, by telephone at 310-201-9150 or Toll Free at 888-773-9224, by
e-mail to shareholders@glancylaw.com, or visit our website at
http://www.glancylaw.com. 

Envivio provides software-based IP video processing and distribution solutions
to mobile and broadband service providers. Envivio filed its Prospectus for the
IPO on April 25, 2012, selling approximately 7.755 million shares to the public
at $9 per share, raising almost $70 million in gross proceeds. The complaint
charges defendants with issuing a materially false and misleading Registration
Statement and Prospectus in connection with Envivio`s IPO in violation of the
1933 Act. 

On August 13, 2012, the Company issued a press release announcing that it
expected revenues in the range of $10-$11 million instead of its previously
issued guidance of $17-$18 million for the quarter ending July 31, 2012. On this
news, Envivio`s stock declined more than 56% on high volume - a decline of more
than 72% off the IPO price. 

Then, after the market closed on September 6, 2012, Envivio announced
disappointing guidance for its fiscal 2012 third quarter. Thereafter, during a
conference call with investors, Envivio`s executives acknowledged that the
Company was experiencing a significant number of project delays with its
existing customers, particularly in North America and Western Europe, which had
been key growth areas for the Company. Defendants further admitted that the
Company had also been experiencing a severe lengthening in its sales cycle for
obtaining new business. On this news, Envivio`s stock price dropped another 20%
on high volume. 

The complaint alleges that the true facts, which were omitted from the
Registration Statement and Prospectus for the IPO were that: (a) Envivio`s
largest customers did not view Envivio`s services as a spending priority and as
a result they were not increasing their demand for Envivio`s services to the
extent represented due to budgetary constraints; (b) Envivio was experiencing a
severe lengthening in its sales cycle for closing new business; (c) Envivio was
having trouble maintaining a competitive advantage and was losing deals to rival
Harmonic Inc.`s video processing technologies; and (d) Envivio`s past revenue
results were not indicative of its future operations as the Company`s business
was not growing as fast as represented, particularly in North America and
Western Europe. 

Plaintiff seeks to recover damages on behalf of all purchasers of Envivio common
stock in or traceable to the IPO (the "Class"). The plaintiff is represented by
Glancy Binkow & Goldberg LLP, which has expertise in prosecuting investor class
actions and extensive experience in actions involving financial fraud. 

This press release may be considered Attorney Advertising in some jurisdictions
under the applicable law and ethical rules.

Glancy Binkow & Goldberg LLP, Los Angeles, CA
Michael Goldberg
310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com



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