Ryan & Maniskas, LLP ( www.rmclasslaw.com/cases/tnav) announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California 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").
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at email@example.com or visit: www.rmclasslaw.com/cases/tnav.
TeleNav 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. TeleNav's largest wireless relationship is with Sprint Nextel Corporation ("Sprint"). 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 TeleNav issued a false and misleading IPO Registration Statement that failed to disclose information pertaining to the Company's business, operations, and financial prospects. Additionally, the complaint alleges that TeleNav, in its Registration Statement, did not disclose that its current contract with Sprint, TeleNav’s largest customer, was up for renegotiation and that Sprint was not willing to continue with the same contract terms beyond December 31, 2010.
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. 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.