Covisint Corporation provides a cloud engagement platform for enabling organizations to securely connect, engage and collaborate with large, distributed communities of customers, business partners and suppliers. In its IPO, the Company sold 6.4 million shares of Covisint common stock to the public at $10 per share, raising approximately $64 million in gross proceeds for the Company.

According to the law firm press release, the Complaint charges Covisint, certain of its officers and directors and the underwriters of the IPO with violations of the Securities Act.

The Complaint alleges that the Registration Statement, and the documents referenced and incorporated therein, negligently failed to disclose the following material facts which existed at the time of the IPO: (i) that the Company was experiencing a greater than expected decline in its subscription revenue due to poor sales execution and late-stage pipeline conversion issues; (ii) that the Company was facing increased competition in its services segment as customers were not adding services at a rate consistent with expectations; (iii) that the Company was experiencing a decline in General Motors-related service revenue; (iv) that the Company was losing healthcare customers at an increasing rate and its pipeline of healthcare-related deals was steadily declining and included numerous deals that were not likely to be consummated; and (v) as a result of the foregoing, there was no reasonable basis to “expect” revenues for 2014 to increase by 20% from 2013. These known, but undisclosed, facts had a material adverse effect on Covisint’s operating results during its fourth quarter and fiscal 2014 full-year. At the time of the filing of the lawsuit, Covisint stock was trading at approximately $5.37 per share, a 46% decline from the IPO price.

On August 15, 2014, the Court issued an Order consolidating related actions, appointing lead Plaintiff, and approving the selection of lead Counsel. Lead Plaintiff filed an amended Complaint on October 14.

On June 2, 2016, the parties entered into a Stipulation of Settlement.