National securities law firm Faruqi & Faruqi, LLP said it is investigating potential securities fraud at Envivio, Inc. (ENVI: Quote).
According to the law firm, the investigation focuses on whether the company and its executives violated federal securities laws by failing to disclose that: (1) Envivio's largest customers did not view the company's services as a priority and were uninterested in increasing their demand for Envivio services to the extent represented; (2) the company was experiencing lengthening sales cycles for closing new business; (3) the company was struggling to maintain a competitive advantage due to the technologies of its rival, Harmonic Inc.; and (4) considering that the company's business was not growing as quickly as represented, the company's past revenue results were not indicative of Envivio's future financial operations.
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by RTT Staff Writer
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