PHILADELPHIA, Sept. 24, 2010 (GLOBE NEWSWIRE) -- Spector Roseman Kodroff & Willis, P.C. ("SRKW") announced today that it is continuing its investigation of reports that TeleNav, Inc. ("TeleNav" or the "Company") (Nasdaq:TNAV) filed a false and misleading Registration Statement in connection with the company's May 13, 2010 initial public offering ("IPO").
Sunnyvale, California-based TeleNav, a provider of wireless location-based services, filed a Form S-1/A Registration Statement on May 13, 2010 for the purpose of selling 7 million shares of its common stock at $8 per share to the public market. The Registration Statement stated that 55 percent of TeleNav's business came from wireless carrier Sprint Nextel Corp. ("Sprint") and that the contract with Sprint was not due to expire until December 31, 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.
A class-action lawsuit has already been filed. The complaint charges TeleNav and certain of its officers and directors with violations of the Securities Act of 1933. 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.
If you purchased TeleNav stock prior to July 30, 2010, or wish to discuss this matter further, you are encouraged to call:
SRKW has been representing individual and institutional investors for nearly three decades, serving as lead counsel in numerous securities class actions in U.S. federal and state courts. Please visit the firm's website () for more information about the firm.
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