Under the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in July, the SEC can award between 10 percent and 30 percent of any monetary sanctions of more than $1 million to whistleblowers who provide “original information” leading to a successful SEC enforcement.Whistleblowers may remain anonymous and work with the SEC through an attorney. Under the new law, whistleblowers are also granted expanded rights and protections against employer retaliation when disclosing information of corporate wrongdoing to the SEC. If you have information regarding this matter, or you purchased TeleNav stock prior to July 30, 2010, you are encouraged to call Reed R. Kathrein at 510-725-3000 for a personal consultation, or email the Hagens Berman legal team at firstname.lastname@example.org. A class-action lawsuit has already been filed. Any investor with significant losses from purchases of TeleNav stock before July 30, 2010 who wishes to serve as lead plaintiff must file with the court by November 2, 2010. About Hagens Berman Seattle-based Hagens Berman Sobol Shapiro LLP represents whistleblowers, investors and consumers in complex litigation. The firm has offices in San Francisco, Chicago, Boston, Los Angeles, Phoenix and Washington, D.C. Founded in 1993, HBSS continues to successfully fight for investor rights in large, complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com.
Hagens Berman Sobol Shapiro LLP announced today that it is investigating reports that TeleNav Inc. (Nasdaq:TNAV) filed a false and misleading registration statement in connection with the company’s May 13 initial public offering. Sunnyvale, Calif.-based TeleNav, a provider of wireless location-based services, filed a Form S-1/A registration statement on May 13 for the purpose of selling 7 million shares of its common stock at $8 per share to the public market. The registration statement showed that 55 percent of TeleNav’s business came from wireless carrier Sprint Nextel Corp. and that the contract with Sprint was not due to expire until December 2011. Following the IPO, TeleNav’s stock traded as high as $9 per share until July 29, when the company dropped the “Sprint Bombshell.” Less than three months after its IPO, TeleNav revealed that it was already in “active negotiations” with Sprint to amend material terms of its contract with the wireless carrier. On July 30, TeleNav’s stock price plunged, eventually closing at $5.44 per share, a one-day decline of 39 percent. Over the next several weeks, the share price continued to decline as stock analysts from JP Morgan and Deutsche Bank Securities downgraded the stock due to the potential revenue loss associated with the evolving contract with Sprint. Hagens Berman is investigating claims that TeleNav knew prior to filing its registration statement that it was renegotiating the contract with Sprint and that the renegotiated contract would likely result in significant revenue loss at TeleNav. Hagens Berman attorneys believe that TeleNav was required by securities law to disclose that the company was, or would shortly be, renegotiating material terms to its contract with Sprint and that the renegotiated contract would likely result in significant revenue declines at TeleNav. Key questions under investigation include: what TeleNav knew at the time of the offering about when negotiations would commence with Sprint; the degree to which TeleNav executives had already started preliminary discussions with Sprint; TeleNav executives’ knowledge, at the time of the IPO, that a “successful renegotiation” of the Sprint contract would lead to an “aggregate reduction of revenue” from the carrier; and TeleNav executives’ knowledge that these negotiations would impact the company’s relationships with other wireless carriers.