NEW YORK, June 16, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Covisint Corporation ("Covisint" or the "Company") (Nasdaq:COVS) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Covisint securities pursuant and/or traceable to the Covisint'sSeptember 26, 2013 initial public offering (the "IPO"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 11 and 15 of the Securities Act.
If you are a shareholder who purchased Covisint securities during the Class Period, you have until July 29, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Covisint provides a cloud engagement platform in the United States and internationally. Its platform enables organizations to connect, engage, and collaborate with distributed communities of customers, business partners, and suppliers; and allows organizations with external business relationships to create, streamline, and automate external business processes that involve the secure exchange of and access to critical information from various sources.
The Complaint alleges that Covisint's Registration 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-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.
Shares of Covisint have declined $4.72 per share from the IPO price of $10.00 per share, or more than 47%, to close at $5.28 on June 13, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. WilloughbyPomerantz LLPrswilloughby@pomlaw.com
Source: Pomerantz LLP