CASES
TeleNav, Inc.
Lead Plaintiff Deadline: Nov 1, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against TeleNav, Inc. (TNAV) ("TeleNav" or the "Company"), on behalf of all persons or entities who acquired the common stock of TeleNav pursuant to the Company's false and misleading Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with its May 13, 2010 initial public offering ("IPO"). This case has been filed in the United States District Court for the Northern District of California.
The complaint alleges that On May 13, 2010, TeleNav accomplished its IPO of 7 million shares of common stock at $8.00 per share for gross proceeds of $52.4 million to TeleNav (including over-allotments), pursuant to a false and misleading Registration Statement. The Registration Statement failed to disclose the following adverse facts: (a) the Company would soon be renegotiating its current contract for TeleNav to provide Sprint Nextel Corporation ("Sprint"), its largest customer, with its Sprint Navigation application, which would result in lower overall revenues to TeleNav; (b) the unwillingness of Sprint to continue with the same contract terms beyond December 31, 2010 would not only mean lower revenues from Sprint, but had negative implications for TeleNav's other wireless relationships; and (c) adverse changes to the Sprint relationship would cause TeleNav's results to trend adversely compared to the trends included in the Registration Statement.
On July 29, 2010, TeleNav announced its fourth quarter fiscal 2010 results and disclosed that it had started negotiations regarding contract roll-over with Sprint early, and if successful, the contract roll-over would probably lead to an aggregate reduction in revenue from its largest customer. On this news, TeleNav's stock price fell $3.47 per share, to close at $5.44 per share on July 30, 2010, a one-day decline of 39% on high volume. The stock continued to decline to below $5 per share over the next few weeks as investors absorbed the implications of TeleNav's announcement.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.