Robbins Umeda LLP today announced that a class action has been commenced in the United States District Court for the Northern District of California (the "Court") on behalf of purchasers of TeleNav, Inc. ("TeleNav" or the "Company") (NASDAQ:TNAV) common stock pursuant to the Company's false and misleading Registration Statement and Prospectus the ("Registration Statement") issued in connection with its May 13, 2010 initial public offering ("IPO").
TeleNav, Inc. provides wireless location-based services in North and South America, Asia, and Europe, including global positioning system ("GPS") navigation, mobile resource management, asset GPS tracking, and local search. The Company generates its revenue primarily through its relationships with wireless carriers. TeleNav's largest wireless relationship is with Sprint Nextel Corporation ("Sprint"). TeleNav is headquartered in Sunnyvale, California.
The complaint charges TeleNav and certain of its officers and directors with violations of the Securities Exchange Act of 1933. Specifically, the complaint alleges that the Company accomplished its IPO of 7 million shares of common stock at $8.00 per share for proceeds of $52.4 million to TeleNav, pursuant to a false and misleading Registration Statement that failed to disclose information pertaining to the Company's business, operations, and financial prospects.
On July 29, 2010, the Company announced its fourth quarter fiscal 2010 results and disclosed that it had started negotiations regarding contract roll-over with Sprint early. If successful, the Company revealed that the contract roll-over would probably lead to an aggregate reduction in revenue from its largest customer. Upon 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 following few weeks.If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from September 2, 2010. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Gregory E. Del Gaizo, Esq. of Robbins Umeda LLP, at 800-350-6003 or by e-mail at firstname.lastname@example.org. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.