SAN DIEGO, Sept. 13, 2010 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit has been filed by a TeleNav investor in United States District Court for the Northern District of California on behalf on behalf of purchasers of TeleNav, Inc. (Nasdaq:TNAV) common stock pursuant to an alleged false and misleading Registration Statement and Prospectus issued in connection with its May 13, 2010 initial public offering ("IPO"), against TeleNav, Inc., certain of its officers and directors and the underwriters of the IPO over alleged violations of the Securities Act of 1933.
Those who purchased TeleNav, Inc. (Nasdaq:TNAV) common stock pursuant to the Registration Statement and Prospectus issued in connection with its May 13, 2010 IPO, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
Following TeleNav's IPO in May 2010 its shares started trading in May 2010 at almost $10 and traded as high as $9 per share until July 29, when TeleNav announced its fourth quarter fiscal 2010 results and disclosed that it had started negotiations regarding its contract roll-over with Sprint Nextel Corporation, and if successful, the contract roll-over would probably lead to an aggregate reduction in revenue from its largest customer. The plaintiff alleges that the Registration Statement and Prospectus failed to disclose that TeleNav would soon be renegotiating its contract to provide Sprint Nextel Corporation with its Sprint Navigation application, which would result in lower revenues, that the unwillingness of Sprint Nextel Corp to continue with the same contract terms beyond December 31, 2010 would have negative implications for TeleNav's other wireless relationships, and that adverse changes to the Sprint Nextel relationship would cause TeleNav's results to trend adversely compared to the trends included in the Registration Statement and Prospectus. After TeleNav disclosed the negotiations on July 29, 2010, so the lawsuit, its stock price declined $3.47 per share, to close to $5.44 per share on July 309, 2010, a one day decline of 39% on high volume. TeleNav's stock continued to decline to as low as $4.68 per share on August 10, 2010, but recovered roughly $1 in value and traded currently at $5.24 per share, still over 30% less value than during July 2010.
Those who purchased TeleNav, Inc. (Nasdaq:TNAV) common stock pursuant to the Registration Statement and Prospectus issued in connection with its May 13, 2010 IPO, should contact the Shareholders Foundation.
The Shareholders Foundation, Inc. is an investor advocacy group 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.
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