TeleNav, Inc. Investor Files Lawsuit Over Alleged Securities Laws Violations
NOVEMBER 2011 - According to the Notice:
Security and Time Period: TeleNav common stock purchased pursuant to and/or traceable to TeleNav's IPO on or about May 13, 2010 through and including September 2, 2010.
Settlement Fund: $3,800,000 in cash plus any interest earned. Based on the information currently available to Lead Plaintiff and the analysis performed by his damage consultants, it is estimated that if Class Members submit claims for 100% of the shares eligible for distribution under the Plan of Allocation (described below), the estimated average distribution per share of common stock will be approximately $0.47 before deduction of Court-approved fees and expenses, including the cost of notifying Members of the Class and settlement administration and any attorneys' fees and expenses awarded by the Court to counsel for the Lead Plaintiff. Historically, actual claims rates are less than 100%, which result in higher distributions per share. A Class Member's actual recovery will be a proportion of the Net Settlement Fund determined by that claimant's recognized claim as compared to the total recognized claims of all Class Members who submit valid Proof of Claim and Release forms ("Proof of Claim".).
Reasons for Settlement: Avoids the costs and risks associated with continued litigation, including the danger of no recovery.
SEPTEMBER 2010 - An investor in TeleNav, Inc. (NASDAQ:TNAV) has filed a lawsuit in the United States District Court for the Northern District of California against TeleNav, Inc over alleged violations of Federal Securities Laws.
According to the complaint the plaintiff alleges that TeleNav, Inc and certain of its officers and directors violated the Securities Act of 1933 by issuing a registration statement and prospectus in connection with its May 13, 2010 initial public offering that was false and misleading.
TeleNav, Inc., located in Sunnyvale, CA is a provider of wireless location-based services (LBS), including global positioning system (GPS) navigation, mobile resource management (MRM), asset GPS tracking (AVL) and local search. TeleNav, Inc went public in May 2010, and its shares started in May 2010 at almost $10. While TNAV stayed above $8 per share for the past three months, they lost almost 50% of its May value on July 30, 2010 and recently traded at $5.09 per share. On July 29, 2010, after the market closed TeleNav disclosed on July 29, 2010, that it was currently renegotiating its contract with its largest customer, Sprint Nextel Corp. On this news, so the lawsuit, TeleNav’s 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 n August 10, 2010, but recovered roughly $1in value and traded currently at $5.46 per share, still over 30% less value than during July 2010.