Hagens Berman Investigates Potential Securities Law Violations at TeleNav by EON


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									Hagens Berman Investigates Potential Securities
Law Violations at TeleNav
New Law Protects, Rewards Whistleblowers Who Step Forward to Report SEC Violations

September 08, 2010 03:47 PM Eastern Daylight Time  

SAN FRANCISCO--(EON: Enhanced Online News)--Hagens Berman Sobol Shapiro LLP announced today that
it is investigating reports that TeleNav Inc. (Nasdaq:TNAV) filed a false and misleading registration statement in
connection with the company’s May 13initial public offering.

Sunnyvale, Calif.-based TeleNav, a provider of wireless location-based services, filed a Form S-1/A registration
statement on May 13 for the purpose of selling 7 million shares of its common stock at $8 per share to the public

The registration statement showed that 55 percent of TeleNav’s business came from wireless carrier Sprint Nextel
Corp. and that the contract with Sprint was not due to expire until December 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

Hagens Berman is investigating claims that TeleNav knew prior to filing its registration statement that it was
renegotiating the contract with Sprint and that the renegotiated contract would likely result in significant revenue loss
at TeleNav.

Hagens Berman attorneys believe that TeleNav was required by securities law to disclose that the company was, or
would shortly be, renegotiating material terms to its contract with Sprint and that the renegotiated contract would
likely result in significant revenue declines at TeleNav.

Key questions under investigation include: what TeleNav knew at the time of the offering about when negotiations
would commence with Sprint; the degree to which TeleNav executives had already started preliminary discussions
with Sprint; TeleNav executives’ knowledge, at the time of the IPO, that a “successful renegotiation” of the Sprint
contract would lead to an “aggregate reduction of revenue” from the carrier; and TeleNav executives’ knowledge
that these negotiations would impact the company’s relationships with other wireless carriers.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in July, the SEC can
award between 10 percent and 30 percent of any monetary sanctions of more than $1 million to whistleblowers who
provide “original information” leading to a successful SEC enforcement.

Whistleblowers may remain anonymous and work with the SEC through an attorney. Under the new law,
whistleblowers are also granted expanded rights and protections against employer retaliation when disclosing
information of corporate wrongdoing to the SEC.

If you have information regarding this matter, or you purchased TeleNav stock prior to July 30, 2010, you are
encouraged to call Reed R. Kathrein at 510-725-3000 for a personal consultation, or email the Hagens Berman
legal team at tnav@hbsslaw.com.

A class-action lawsuit has already been filed. 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.

About Hagens Berman

Seattle-based Hagens Berman Sobol Shapiro LLP represents whistleblowers, investors and consumers in complex
litigation. The firm has offices in San Francisco, Chicago, Boston, Los Angeles, Phoenix and Washington, D.C.
Founded in 1993, HBSS continues to successfully fight for investor rights in large, complex litigation. More about the
law firm and its successes can be found at www.hbsslaw.com.

Firmani + Associates Inc.
Mark Firmani, 206-443-9357

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