National securities law firm Faruqi & Faruqi, LLP said it is investigating potential securities fraud at Envivio, Inc. (ENVI).
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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